Pending interest rate hike may impact Michigan's economy
If the Federal Reserve raises interest rates as expected later this week, one economist says Michigan’s economy could take a hit.
The Fed is expected to hike interest rates by 25 basis points to 1.00-1.25 percent at its June 13-14 meeting.
Robert Dye is Comerica Bank’s chief economist. He expects the Fed board will approve a quarter of a percentage point increase in the prime rate when it meets this week. It would be the second hike this year.
“It could be a little bit of a head wind on the single family housing market, especially for these millennials being so unsure about getting into the housing market to begin with over the last couple of years,” says Dye.
Dye says Michigan’s auto industry may also take a hit, at a time when auto sales have plateaued.