Americans Want Fed to Stop Raising Interest Rates, Poll Shows

(Bloomberg)

The American public has turned against the Federal Reserve's two-year campaign of interest-rate increases, concerned it may hurt the economy by slowing growth, a Bloomberg/Los Angeles Times poll shows.

By a 65 percent to 22 percent margin, Americans oppose another rate increase by the central bank, which says such moves are necessary to counter inflation.

[...]

The Bloomberg/Los Angeles Times poll found that those who earn more money were more likely to support raising interest rates. Among respondents whose household incomes exceed $100,000, 39 percent favored higher rates, while 52 percent were opposed; for those making $40,000 to $60,000, it was 13 percent in favor of higher rates and 76 percent opposed.

Other groupings based on age or political orientation show opposition to additional rate hikes. But it does look like those in the middle-class are feeling the pinch more (certainly more than those with greater household incomes).

Are higher interest rates making a difference to the middle-class, both in terms of credit card rates and adjustable mortgages? Something seems to be going on here, and it might lead to a pull-back by the American consumer, who never seems to quit spending.


posted by Quiddity at 6/29/2006 05:11:00 AM