From the Madometer today:
Concerns that out-of-cycle rate hikes might harm consumer spending or in some way shock the economy are misplaced. Consumers are in a strong position, much stronger than is commonly perceived.
…The broader and more important point, notwithstanding the very modest nature of these recent hikes, is that consumers are actually in a strong position. They can easily withstand rate hikes, even ones of a much larger magnitude than what we’ve seen. As an aside, it’s a good bet that we will see more by the way, maybe not soon, but policymakers clearly don’t mind rates going up, and further regulatory action in the banking sector is guaranteed.
So there you have it. Duck!
