European Capital Partners - Delayed pain Discover this fund | European Capital Partners
Asset management and fund structuring boutique

Delayed pain

Aug 01, 2023

Only 11% of the US household debt is currently on variable interest rates. Therefore the US consumer is currently not very sensitive to higher interest rates when paying down his mortgage debt, auto and student loans. The ones really impacted are the ones contracting new loans or renewing existing ones. The pain of the interest rate hikes by the Fed will therefore be felt by the consumer with a time lag.

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