The Fed wanted to move early in the year before the campaign gets under way. Hike Unlikely to Dampen Spending Federal Reserve Chairman Alan Greenspan will likely have to go further to get the attention of consumers made giddy by a robust job market and spectacular stock gains. Fed's rate hikes imposed since last summer are too small to convince Americans to spend and borrow less, analysts said. One area where rates do appear to be taking a toll is home sales, which fell by 10.7 percent in January, according to the National Association of Realtors. The drop, however, came on the heels of record-setting sales in 1998 and 1999.
Consumers are mostly interested in monthly payments.
When it comes to cars and other things the payments can be kept down with rebates, special financing and things like that. The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.