Why the interest rate is going up! it seems the only thing it is doing is hurting middle class! any thoughts?

Question

Everyone is suffering from this...inflation rate seem to be an excecuse to kill the middle class!

Answer 1

Not everyone is suffering from this... It is keeping the economy in check so that inflation doesn't run wild...

My kids are saving more because they are actually getting some decent interest paid on their savings...

Answer 2

The interest rate is raised when the supply of money is getting too large. When there is too much money in circulation, too much purchasing on credit causes this among other things, inflation results. Inflation is the worst possible thing for the middle class, and the federal reserve has artificially kept the interest rate low in order to stimulate business and to make the economic indicators sound good. This has gone on the whole time Greenspan ran the fed reserve bank. As a result we have been told that inflation is low, but if you look around you know better. Inflation is the increase in costs for things. Do you feel that prices have not increased more than about 3% a year in the last 20 or so years? I feel they have gone up alot more than this. Inflation has been hidden and basically has happened in the devaluation of the dollar. Raising interest rates hurts, and I know that I personally don't need them to go up right now, but the result of not raising them is much worse in the long run.

Answer 3

money markets are affected by our national debt, by foreign currencies and the amount of goods we send overseas versus the amount we import, etc. it is complicated. I am not sure I understand it fully at all. Alan Greenspan was pretty good at understanding it and even he talked in riddles.

Answer 4

THE MIDDLE CLASS IS GETTING WIPED OUT . THEY ARE EITHER GOING UP TO THE WEALTHY CLASS OR THEY ARE DROPPING TO THE JUST ABOVE POVERTTY CLASS . SAD BUT TRUE .

Answer 5

I sure wish they would go back down!