auto dealer in black and red logo
MenuMENU
SearchSEARCH

Americans Concerned About Interest Rate Hikes, Mark Volatility, Survey Shows

Thanks to a rocky start in global financial markets and uncertainty regarding future interest rate hikes, Americans believe there is a 36% chance the U.S. economy will slip into a recession this year, a new survey shows.

by Staff
March 1, 2016
3 min to read


BLOOMINGTON, Ill. — The Federal Reserve’s recent interest rate hike and a rocky start to the year in global financial markets is hurting consumer confidence, according to a new survey. It showed that, on average, American believe there is a 36% chance the U.S. economy will fall into a recession this year.

The COUNTRY Financial Security Index, a survey of 1,000 American adults on personal financial security topics, revealed that many Americans are feeling uncertain about the state of the economy. They are unsure how the recent interest rate hike — as well as potential future increases — will influence both the economy and their personal finances.

This wariness comes on the heels of a slight dip in the most recent measure of overall financial security by COUNTRY Financial in December 2015. After reaching post-recession highs in June 2015, the Financial Security Index dipped from 66.9 to 66.6 following months of financial market volatility and interest rate uncertainty.

“While the Federal Reserve has taken its first steps in normalizing U.S. monetary policy, future rate hikes will be measured,” said Troy Frerichs, director of wealth management at COUNTRY Financial. “Right now we don’t view U.S. monetary policy as a major headwind for the U.S. economy in 2016. Despite the rocky start to the year in the financial markets, the U.S. economy continues to grow with strong support from the labor markets and low energy prices.”

Less than 20% of consumers surveyed believe raising interest rates in 2016 will help the U.S. economy, while even fewer (11%) believe it will benefit them personally. In contrast, many Americans have a negative outlook on interest rate increases, but an even larger group doesn’t know what to expect:

  • 31% of Americans report that they “don’t know” what the Federal Reserve’s actions on interest rates will do to the economy

  • Nearly one in four (23 percent) don’t know how slowly raising interest rates will impact their personal financial situation

“While the Fed usually begins to raise short-term interest rates to keep the economy from overheating, the economy, in this instance, isn’t showing signs of excess and this is more of a normalization process of historically low rates,” said Frerichs. “Initially consumers won’t be deterred from buying homes or cars simply because of this initial rate hike. Financing costs are still very low.”

When the Federal Reserve increased interest rates at its December 2015 meeting, it was the first exposure to an interest rate increase for many millennials. According to COUNTRY Financial, 40% of millennials are unsure how rising rates will impact the economy and 32% do not know how rising rates will influence their own financial situation.

However, more than half of millennials believe that the likelihood of rising interest rates will matter when it comes to making major purchases, such as buying a car or home.

“The initial rate hike was more important for headlines than for the health of the economy, and the economy will need to continue to show improvement for the Fed to keep raising interest rates,” Frerichs noted. “A strong economy should buffer concerns about rising interest rates, especially given the current levels of interest rates.”

Originally posted on F&I and Showroom

More Dealer Ops

two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →
Headshots of two male executives
Dealer Opsby StaffMarch 24, 2026

IA American Appoints Two Execs

Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.

Read More →
Dealer Opsby StaffSeptember 8, 2025

Cox Automotive Acquires Inspection Firm

Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities

Read More →
Ad Loading...
Dealer Opsby StaffAugust 26, 2025

Assurant Expands Partnership With Holman

Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships

Read More →
Dealer Opsby Hannah MitchellAugust 26, 2025

Franchises, Throughput Down in First Half

A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.

Read More →
Dealer OpsAugust 25, 2025

How to Build a High-Performance Sales and F&I Team

Performance and profits start with people chosen and led the right way.

Read More →
Ad Loading...
Dealer Opsby Hannah MitchellAugust 19, 2025

Buy-Sells Up in Q2

Kerrigan metrics show there’s plenty of demand, though many sellers are waiting to pull the trigger.

Read More →