Interest rate impact: spending habits and Halloween trends
Nov 1, 2023, 7:30 AM | Updated: Nov 2, 2023, 4:10 pm
SALT LAKE CITY — Grappling with managing inflation has been tough for the Fed. The thought that interest rates might increase further has many Americans concerned about their spending habits and purchasing power.
The Fed’s efforts to handle inflation have led to a series of interest rate increases. The impact of the increase has been felt across almost all of our daily lives.
High-interest rates affect both credit card holders and homeowners. According to Forbes, the average credit card rate is 27.81%. This, coupled with higher mortgage rates, has left individuals feeling the pinch of inflation as they see their purchasing power diminish.
The Federal Reserve’s goal is to slow down spending to tackle inflation, but it’s not just the “big-ticket items” like homes and cars that are impacted. Everyday expenses are also taking a hit, making it challenging for individuals to keep up with their spending habits.
Interest rates are up, and spending is down, except for Halloween
Despite inflation concerns, Utahns are going all out for Halloween this year. According to the Deseret News, Americans are predicted to spend a record $12 billion on Halloween, with an average of $40 spent on candy.
Here in Utah, our “skelly game” is on display in front yards across the state. Utah leads the states in Halloween decorations for front yards. This shows that even in the face of the adversity of inflation, some spending is spookily justifiable.
Interest rate hikes have created a complex financial landscape for individuals. Despite financial constraints, many Americans prioritize spending on valued items.
The question remains: with more holidays on the way, will interest rates affect our spending going into the final quarter of the year?