Sunday, April 11, 2010
Interest Rates Have Nowhere to Go but Up
Even though we still have ever-increasing debt problems and the possibility of inflation, economists say it is inevitable that interest rates will rise. The raise has hit the housing market first. The next areas targeted are credit card use and then car loans.
Subscribe to:
Post Comments (Atom)
3 comments:
Interest rates have been and still are really low. I don't think raising them will do too much harm to the economy, mainly since people are not taking that many "big" loans out anyway.
I don't think rising interest rates will really change anything because consumers have not been taking out loans. The Fed have already announced that they are hoping to raise interest rates to more normal levels.
I believe the Fed does need to raise interest rates somewhat because the economy is so stagnant right now. I don't think consumers will be heavily impacted because consumption is down. As Kyle said, people have not been taking out loans and banks are very strict about who they loan to. I think it is a necessary step in the US's economic recovery to raise interest rates to a more realistic level.
Post a Comment