New fed chief to increase interest rates
Ben Bernanke the federal chief who replaced Alan Greenspan is preparing for his first chance to alter interest rates. He is suspected to follow what Greenspan has been doing since late June 2004, increasing interest rates. The article states that commercial banks may increase their prime lending rate to 7.75 percent. This would be the highest rate in almost five years. Increasing the interest rate will affect the new gradauting class of 2006. Housing loans will increase which will make it more difficult for first time buyers to be approved for a loan. Credit card interest rates will also be increased causing Americans to have even more debt.