Archive for the ‘Mortgages’ Category

Fed Watch: What’s the impact of 1/4 of 1% interest rate increase on you (and me)?

September 22, 2015

Last week’s Federal Reserve action (err, make that inaction) caused a stir in the financial markets.

Common view was: ” geez, is the economy so bad that it can’t absorb a measly 25 bps increase in interest rates?”


In yesterday’s post, I put the number in context, illustrating that the economic cost of a measly .25%  just on servicing the national debt is about $45 billion ( .25% times $18 trillion) ….  equivalent to roughly half of the Federal government’s annual cost for ObamaCare.


Today, let’s take a couple of more views of the 1/4 of 1 % …. the impact on household incomes.