High Interest Rates Likely Dampened Americans’ Economic Mood: Study Despite a strong job market and diminishing inflation, American sentiment towards the economy remains deeply pessimistic. Researchers suggest this malaise may be attributed to the recent end of low borrowing costs. This perspective is pivotal as it highlights that the public’s dissatisfaction stems not only from inflation but also from the primary method used to combat it: raising interest rates. This strategy has made loans for credit cards, vehicles, and more expensive, affecting consumer sentiment in ways not fully captured by conventional inflation metrics. The study implies that as the Federal Reserve starts to lower interest rates, possibly within the year, we might see an uplift in consumer sentiment. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts UBS Warns of Potential 6.5% Fed Rate Hike Amid Enduring Inflation READ MORE U.S. Economy's Fate Tied to Federal Reserve's Decisions READ MORE Gold Set for a Great 2024, with Silver to Shine Even Brighter: UBS Insights READ MORE Banks Offload Bonds at a Loss, Betting on Future Fed Rate Reductions READ MORE Gold Hits Record High: What's Next for the Bullion Market? READ MORE Add a Comment Cancel replyYour email address will not be published.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