Survey finds consumers upset with Fed actions on interest rates

A recent WalletHub survey found that six in 10 respondents are dissatisfied with the performance of the Federal Reserve as inflation weighs on their finances, with eight in 10 believing the country is heading into a recession.

In the personal finance site’s online survey of about 250 Americans in early July, 90% of respondents said they were concerned about inflation. Sixty-one percent blame US politicians the most for inflation, with 26% blaming Russian President Vladimir Putin and 13% the Fed. Meanwhile, 51% don’t think the Fed’s interest rate hike will help fight inflation. However, 56% said the Fed’s rate hikes made them worry about layoffs and job security.

The Fed has raised rates by 1.5% this year. Sixty-three percent of respondents said these increases had affected their wallets. Most respondents — 35% — said they were “angry” with the rise in interest rates. Twenty-five percent were “unprepared” for rate hikes, but an equal percentage were “indifferent” to Fed actions. Fifteen percent were “happy” the Fed raised rates.

“Dissatisfaction with the Fed shouldn’t be surprising given that multiple groups are unhappy for different reasons,” WalletHub analyst Delaney Simchuk said. “People who see the cost of their debt rising aren’t happy for obvious reasons, and those who are worried about inflation don’t see anything changing either.”

Stephen V. Lee