> A recent GOBankingRates survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt and about 6% have more than $10,000 in credit card debt. Although 6% may seem like a small amount, that means that based on the survey results, 14 million Americans have over $10,000 of credit card debt.
The change to the rates increases the amount of interest paid on holding credit card debt. That directly does impact spending for a significant portion of the population.
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The awkward part is that the fed's tools for managing the economy are rather blunt and take time to cause a change. Monetary policy vs Fiscal policy.
However, fiscal policy is tied to the gridlock in congress and so all the responsibility for managing the rate of inflation and jobs has been pushed onto the central bank... and this is what you get.
Dropping rates and raising rates are the tools that they have until a majority of elected politicians want to take the responsibility for making a decision that impacts people's finances.
> A recent GOBankingRates survey found that 30% of Americans have between $1,001 and $5,000 in credit card debt, 15% have $5,001 or more in credit card debt and about 6% have more than $10,000 in credit card debt. Although 6% may seem like a small amount, that means that based on the survey results, 14 million Americans have over $10,000 of credit card debt.
The change to the rates increases the amount of interest paid on holding credit card debt. That directly does impact spending for a significant portion of the population.
---
The awkward part is that the fed's tools for managing the economy are rather blunt and take time to cause a change. Monetary policy vs Fiscal policy.
However, fiscal policy is tied to the gridlock in congress and so all the responsibility for managing the rate of inflation and jobs has been pushed onto the central bank... and this is what you get.
Dropping rates and raising rates are the tools that they have until a majority of elected politicians want to take the responsibility for making a decision that impacts people's finances.