Fed prods Americans to purchase more on credit

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Fed prods Americans to purchase more on credit

Federal Reserve’s much more dovish-than-anticipated decisive statement earlier this week had already signaled that another interest rate-hike this year might have already been out of the questions, goading the US citizens to purchase more in order to keep the wheels of its slowing economy whirling.

So far this year, the Federal Reserve had been thrusting to guide the US economy by controlling the interest rates, banks had been charging one another for immediate loans. If Fed were to lift this rate up, credit card costs alongside home and car purchase costs would also be rising.

Never the less, a majority of US policymakers had been quoted saying following the latest FOMC minutes that another rate hike was entirely being wiped out of the board for a while, pushing the American Citizens to purchase more for keeping the nation’s money-wheel mortaring.

Meanwhile, Wednesday’s (March 20th) rate decision had also been triggered further questions among analysts whether there would an interest rate cut this year, amid an economy which appeared to have slowed down enough to prompt a slash on the interest rates.

Followed by the reveal of latest Fed policy, there had been signs of reverting back interest rate lower for loans used to purchase house and cars, eventually prodding the US citizens to purchase more.