Fed's interest rate increase "a sign of confidence" in U.S. economy
Professor of Finance and Sarkisian Chair in Financial Services Peter Nigro, Ph.D., says that the Federal Reserve's decision to raise interest rates for the first time in almost a decade is "a sign of confidence that the U.S. economy is moving forward.”
“Liftoff will provide more flexibility moving forward," he added, "and is unlikely to have that big an impact on big-ticket items such as mortgages and auto loans.”
Nigro, a leading authority on financial saving, credit risk, and fair lending issues, added that raising rates will “help savers and provide banks greater incentives to lend and will lead to higher net interest margins.” He noted that "cheap money has driven up asset prices. The interest rate increase is one tool the Fed can use to make sure we don’t get another bubble.”
Before coming to Bryant, Nigro worked at the Office of the Comptroller of the Currency, which is responsible for regulating all national banks. Media frequently seek his comment and perspective on such topics as the future of community banks, the inner workings of credit scoring models, and the mortgage underwriting process.