To: Janet Yellin, Chairperson - Federal Reserve Board
To Janet Yellin and Federal Reserve Board members:
Federal Reserve Board Chairperson
20th St and Constitution ave N.W.
Washington DC 20551
Ms. Janet Yellin -
Raising the Federal Funds rates will increase the cost of home ownership for tens of millions of Americans who have adjustable rate mortgages. These increases in interest rates will be passed on to millions of renters who cannot afford to buy a home. More money spent on interest rates means billions more for the bankers and more debts for the people. It will slow down economic activity and borrowing leading to an increase in unemployment. Federal Reserve policy needs to represent all the people - not wealthy Wall St bankers. The nation as a whole, especially the poor, and what is left of the middle class, will be better served by keeping interest rates near zero percent as a permanent long term Fed policy. Thank you for listening.
Why is this important?
Rising interest rates can add thousands of dollars in the cost of buying a home or a car or running a small business. HIgher interest rates means that the working poor will have less money to spend on consumer goods and purchases. A rise in interest rates will mean fewer cars and homes will be sold. It can eventually lead to a recession or worse. The nations biggest banks are the main beneficiaries of rising interest rates and will use these funds to buy ownership of an ever increasing share of American industry. Student loans, car loans, home loans, small business loans and credit card rates will rise as a result leaving people further in debt. An increase in interest rates is like an increase in taxes. It will also increase the Federal Government national debt, state government debt, and local government debt. Hard working Americans deserve better than a policy that make the banks richer and everyone else poorer.