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Households Better Prepared for Rate Increases This Time
Wednesday, May 20, 2015
Earlier this week Freddie Mac asked if the housing market recovery could
withstand a rate increase (the answer, with some qualification was yes). Now the economists at Wells Fargo are asking
the same about household balance sheets.
The banks Interest Rate Weekly
concludes that should the Federal Reserve begin to increase rates as expected
it will have a "muted" impact on households.
The balance sheets of households are critical to the economy as a whole given
their importance to growth in consumer spending.
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