SAN DIEGO — The Federal Reserve has hiked interest rates three quarters of percent for the second time to help fight inflation.

The Fed interest rate hike basically makes it more costly for you to borrow money for a home or car loan. Their hope is to help get inflation under control.

“It’s the cost of borrowing money, so if you have credit cards or you have a mortgage or you’re looking to finance and get a new mortgage, these are the things where you’re going to see the changes,” financial advisor Brett Gottlieb said.

This means payments on credit card debt or private student loans could go up. It will cost you more to get new home and car loans.

“If you’re looking to buy a new home, now as we’ve seen, these historic low rates of 2.5-3%, now we’re looking at 6-7%. That’s a significant increase,” Gottlieb said. “It’s double! I may think twice about how much home I buy or if I even buy at all.”

Gottlieb says the hike may help to bring down home prices. The increased rates comes as inflation jumps to 9.1%.

“The idea is the government is trying to slow down the spending. Consumer spending, corporate spending, slow the economy down. If we slow the economy down, then we ultimately slow down the cost of things,” Gottlieb said.

With higher rates, consumers and businesses are expected to borrow and spend less to bring down inflation.  

“That’s the whole goal to slow that inflation. Their goal is 2-3%. They like to be closer to 2% from an inflationary standpoint and then we can move forward from there,” Gottlieb said.

But some worry the Fed’s move could lead to a recession.

“It potentially could,” Gottlieb said. “It has to do with two consecutive negative quarters of growth…but recession is driven by more than just the GDP. It’s driven by where is employment at and consumer spending, and there’s a lot of other factors and unemployment rates are really low right now.”

On Thursday, the government is expected to release the country’s economic growth numbers. Some economists says if the numbers are down for a second straight quarter that may mean the country is in a recession.