Summary of The Effect of Fed Funds Rate Hikes on Consumer Borrowing Costs
Should you rush to buy a house, now that the Federal Reserve is raising interest rates?
Money has been so cheap for so long that it is easy to forget that this new normal is quite abnormal in economic history. But what will happen now that rates have finally begun their long-anticipated ascent? Federal Reserve Bank of New York economists Nina Boyarchenko, Sooji Kim and Matthew Plosser chart the impacts of rising interest rates on mortgages and come up with some likely answers. getAbstract recommends this short but sharp investigation into how monetary policy affects consumers and the real economy to executives and policy makers.
In this summary, you will learn
- How changes to the US federal funds rate affect consumer loan interest rates in the United States
- Why loan maturities matter
- Why the credit quality of loans doesn’t
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