A Break from Tradition: How the Fed's Recent Policies Have Cost US Households The Federal Reserve’s recent interest rate hikes have deviated from the historical norm, resulting in a net loss in interest income for U.S. households for the first time in fifty years. While increases in the Fed’s rates typically lead to a net gain for households, the interest paid on mortgages, credit cards, and other debts has surged by nearly $420 billion since March 2022, overshadowing the $280 billion rise in interest income. This shift has led to a significant reduction in household net interest income, marking a departure from past trends. Although the impact of Fed policies on employment has not yet mirrored previous cycles, with no significant layoffs or wage stagnation observed, the decrease in net interest income has become a notable burden on consumer spending. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Labor Market Resilience Amidst Technology Layoff Wave READ MORE Fed's Dot Plot to Reveal Insights on Potential Rate Cuts READ MORE Core Inflation Cools for Fourth Month, Bolstering Case for Fed Rate Cut READ MORE Treasury Secretary Yellen: Debt Burden Sustainable at Current Levels READ MORE Dow Nears Historic 40,000 Milestone Amid Optimism READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment