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Little effect on Michigan's economy expected if the Federal Reserve raises interest rates

Steve Carmody
Michigan Radio

U.S. stocks are slightly lower following some mixed economic news out of China.

Traders are also looking ahead to a Federal Reserve meeting that begins Wednesday. The bank could raise interest rates for the first time since the financial crisis.

A Michigan State University economist does not expect this week’s anticipated interest rate hike by the Federal Reserve will have a noticeable effect on Michigan’s economy. 

Economist Charley Ballard doubts the Fed’s first rate hike in nearly a decade will do much to home and care loan rates in Michigan.

“Honestly, it’s been anticipated for so long I’m almost ready for it to finally happen and then we’ll just be done with it.  I’ll breathe a sigh of relief and we can move on,” says Ballard.

The Federal Reserve would move to increase interest rates as a way deal with inflation.

If it happens, it will be the first time since 2006 that the Federal Reserve has increased interest rates.  

Steve Carmody has been a reporter for Michigan Public since 2005. Steve previously worked at public radio and television stations in Florida, Oklahoma and Kentucky, and also has extensive experience in commercial broadcasting.
The Associated Press is an independent global news organization dedicated to factual reporting.