The Federal Reserve will be under tremendous pressure for the next few quarters to raise its benchmark lending rate faster than is has recently. Which will then have the trickle effect on higher costs on lines of credit, HELOC’s, mortgages, credit cards and down the line.
This is likely to happen because of signs of the tightening jobs market: Part-time workers are finding more work after several years in which part-time employment had been abnormally high.
Granted it is estimated that there are still 1.3 million more folks working part-time who would prefer full-time jobs, but compared with the prerecession norm. But their ranks are down and will keep dropping as more part-time workers are able to quit and obtain full-time jobs at new employers.
It is expected that now by the end of 2018, involuntary part-time employment will be back to its normal rate.
So inflation will increase so then prices and wages. All along with the increase in interest costs.