Tag Archives: Fed and normalized interest rates

The Federal Reserve Rate Hike And Its Impact On Consumer Debt!

Aggregate household debt balances

Yesterday the Federal Reserve raised its key fed funds rate by .25% and signaled that they would likely raise two more times in 2018! For consumers who have a record amount of debt outstanding (a level over $13 trillion that’s $280 billion higher than the 2008 peak and 16.2% above the 2013 trough), the good […]

Can U.S. Interest Rates Ever Rise?

historical U.S. inflation rate

While interest rates have risen from depths that saw the 10-year treasury yielding 1.36% on 7/3/16, to 2.25% today, given Fed plans to tighten and pledge to shrink its balance sheet should rates be even higher? The Fed will typically engage in the monetary policy of tightening and lift the Fed Funds rate when the two […]