Your current web browser is outdated. For best viewing experience, please consider upgrading to the latest version.
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
ERROR
Main Error Mesage Here
More detailed message would go here to provide context for the user and how to proceed
search DONATE
Close Nav

Washington Isn’t Ready for Higher Interest Rates

back to top
commentary

Washington Isn’t Ready for Higher Interest Rates

National Review Online July 12, 2022
EconomicsOther

Congress and the White House are not prepared for a world with higher interest rates, and there's no backup plan.

Weary families have already seen soaring inflation reduce their real wages by 3 percent over the past year. The Federal Reserve and market forces will likely defeat inflation within a reasonable time frame. But the resulting higher interest rates will cost Washington — and taxpayers — for many years to come.

Any family shopping for a new home is already feeling the interest-rate crunch. Since last year, the average mortgage rate on a conventional fixed-rate loan has jumped from 2.6 percent to 5.8 percent, pushing up the monthly payment on a median-priced home from $1,289 to $1,877. Interest rates on car loans and small-business loans have jumped as well.

Continue reading the entire piece here at the National Review Online

______________________

Brian M. Riedl is a senior fellow at the Manhattan Institute. Follow him on Twitter here

Photo by marchmeena29/iStock

Saved!
Close