These poll numbers were released earlier today by Rasmussen Reports -- "an electronic publishing firm specializing in the collection, publication, and distribution of public opinion polling information."
76% Say Fed Is Likely To Raise Other Interest Rates This Year
Monday, February 22, 2010
The Federal Reserve Board's decision last week to raise the interest rate it charges banks for short-term loans has most Americans now expecting other rate increases this year.
A new Rasmussen Reports national telephone survey shows that 76% of adults now think it's at least somewhat likely that the Fed will raise other interest rates this year. That number includes 40% who say it is very likely.
Just 14% think it is not very or not at all likely that the Fed will raise other interest rates this year.
But then 54% of Americans expect interest rates to be higher a year from now . That level of belief has been unchanged since last summer . Only 37% now are at least somewhat confident that the Fed will be able to keep inflation under control and interest rates down.
While the Fed has deliberately pushed interest rates down for more than a year to help the ailing economy, the decision to raise the bank lending rate hasn't increased public economic confidence. Just 15% say the Fed's decision makes them more confident about the economy. Forty-one percent (41%) say it makes them less confident, and another 36% say it has no influence on their view of the economy.
The rate in question does not directly impact credit card and mortgage interest rates.
Forty-six percent (46%) of Americans continue to believe that the chairman of the Federal Reserve Board has too much power over the economy. This finding is unchanged from June when the Obama administration began proposing the Fed have even more regulatory powers. Only eight percent (8%) say the Fed chairman doesn't have enough power over the economy, while 33% say the amount of power he has is about right.
In late January, Americans were evenly divided over whether Ben Bernanke should be confirmed for a second four-year term as Fed chairman. The Senate ultimately confirmed President Obama's nomination of Bernanke for a second term.
Bernanke opposes legislation calling for regular audits of the Fed's monetary policies, but 79% of Americans think auditing the Fed is a good idea.
Fifty-two percent (52%) of Americans say they followed news stories about the Fed raising a key interest rate at least somewhat closely, with 21% who followed very closely. Forty-four percent (44%) say they didn't follow that news closely, if at all.
The economy still trumps all other key issues regularly tracked by Rasmussen Reports in terms of importance to voters.
Following the decision to raise the key interest rate, investors express more confidence in the economy than non-investors. Investors also are slightly more inclined to think other interest rate hikes will follow this year.
Among investors , 12% rate the economy as good or excellent, and 54% give it a poor rating.
Younger adults feel more strongly than their elders that other interest rate increases are very likely this year.
Fifty-one percent (51%) of American adults believe decisions made by U.S. business leaders to help their own businesses grow will do more for the economy than decisions made by the government.