After nearly a decade of historically low interest rates, the Federal Reserve is tapping ever so slightly on the economic gas pedal. The Fed’s one-quarter percent rate hike is designed to head off inflation. We talk with MSU economist Charley Ballard and Community Bankers of Michigan general counsel Michael Kus about the implications of the interest rate hike for Michigan.
“The patient is out of the hospital.” That’s one of many metaphors that’s been used this week to describe the state of the U.S. economy. The Federal Reserve made history Wednesday when it raised interest rates one quarter percent. The Fed had set the rate near zero in 2006 in an attempt to jumpstart an economy that was quickly sliding into recession. This week’s rate hike is a sign that America’s financial health is on the mend. But how does the Fed’s action translate to us here in Michigan?
Current State talks with Charley Ballard, professor of economics at Michigan State University, and Michael Kus, an attorney and the general counsel and spokesperson for the Community Bankers of Michigan.