Higher interest rates are already a tax on consumers through higher mortgage rates, higher student loan rates and higher consumer loan rates. Is the economy strong enough to withstand a sudden ~30% increase in borrowing costs? Hopefully yes, since the actual rate we pay takes time to adjust higher, e.g. 5 years for a new 5/1 ARM to adjust.
Given the market determines rates, we can’t fully blame Donald for making borrowing more expensive for everybody. But what about Donald Trump’s plan to increase taxes on the middle class? Let’s learn what’s going on here and help find solutions for millions of Americans who are increasingly getting squeezed.