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.
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.”
More F&I

Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →