really in unprecedented territory, so you know, two-thirds of a point or sorry, 3/4 of a point rise is really unprecedented. how it s going to affect the market i think is going to be larger than it would be in the past just because there has been so much money put into the market by the federal reserve. i mean, we haven t lived through sort of a monetary experiment like this ever. so it s really uncharted territory. yeah, mark, what are the first indicators you ll be looking for and when to determine the impact of this decision and if it s starting to cool inflation? well, i think very early on we should see different sales numbers. so, for example, as we know when you raise interest rates, it costs more to borrow. so therefore things like home mortgages, auto loans are all going to cost more, in addition to paying off things like credit card debt. i think what we need to do is look at the housing data, look at the mortgage data. as we have seen every month from
0.75%. what are we expecting? so, before the last 48 hours 0.5% was the expectation and even that is more than the fed usually does. they usually raise rates in a more gradual fashion so now we re hearing from different reporting that 75 basis points or 0.75% is on the table and what that means for us consumers and businesses, to be honest, is that the cost of borrowing for pretty much everything is going up or is about to go up. think student loans, credit cards, auto loans, home mortgages, i mean, if you are in the market for a home right now, it is hard not to notice how much mortgage rates have spiked certainly this year but even this the last week so that s what that means for us consumers. what it means in terms of the fed and what that could be signaling, there is a feeling that the fed realizes that inflation is proving to be much more stubborn and much more persistent than they had hoped. the last time we heard from jay powell, he said 0.5% so the fact we re getting this mes
year ago. even after multiple rounds of covid relief checks went out. so, why do we continue to spend money we don t have? the big part of that, of course, is home mortgages, over the quarter over $200 billion. and car debt has gone up as well. the number to watch, though, is credit card debt. that is still below what it was during the pandemic, but the trend line is up. people are falling more and more back on their credit cards and that does not bode well for 2022 and 2023. so, optimists will say, administration will say home values are up so the consumer balance sheet is not that bad. however, credit card debt is going up and we know what a burden that can be. that s the ominous thing and the number to watch, that s not going in a good direction. sandra: meanwhile you look at the total amount when you break it down, outstanding debt and number of american households.
affects you. those are what those are borrowing costs for your credit cards, auto loans, home mortgages. i would say if you are trying to refinance a home loan, you know, i would wrap that up, folks. we re going to hear from the fed today that higher interest rates are coming. and kind of really a hard job here, really historic moment, they have to get a hold of inflation, but not jar the economy into another recession. that s a fine line to walk. fine line to walk. delicate balance. totally new phase here. up next, dramatic plans from german anti-vaccination group to assassinate a state governor. that plan thwarted by german police. the threats though continue. we ll take you live to berlin next. it s the you are my diamond sale. get 25% off everything. this is how we shine. at zales. the diamond store.
mortgages off in full. the charity helped first responders on staten island. it s been expanded to honor military and first responders who have given the ultimate sacrifice across the country by paying off their home mortgages. that includes he fallen privilege killed in the line of duty. tunnel to towers took care of the family of a massachusetts police officer by donating $100,000 to help pay off the mortgage. sergeant chestnut was shot and killed after responding to a 911 call. he was awarded a purple heart. he s survived by his wife cindy and two children. the foundationle also built