DARYN KAGAN, CNN ANCHOR: Economists are expecting another interest- rate hike when Federal Reserve policy makers meet today. Fed Chairman Alan Greenspan has indicated he still wants to slow the red-hot economy in order to avoid inflation. But as CNN's Jeanne Meserve reports, so far, consumers seem undaunted by recent rate hikes.</s>JEANNE MESERVE, CNN CORRESPONDENT (voice-over): One, two, three, four times interest rates have gone up since June, and so far, consumers have been largely oblivious.</s>RIC EDELMAN, EDELMAN FINANCIAL SERVICES: As it is usually the case, American consumers are looking at the wrong numbers.</s>MESERVE: Rising fuel prices have Americans all in a tizzy. But rising interest rates do not, even though the impact is greater.</s>EDELMAN: The increase in oil prices is going to translate to about $150 a year in extra fuel costs for the average American family. But if you compare the extra cost of that half-a-point on your mortgage, that would translate to several hundred dollars a year in mortgage expenses for that same American family.</s>MESERVE: Not just mortgage rates, but car loan rates, credit card rates all go up when interest rates do. But Americans are not reacting the way Fed Chairman Alan Greenspan would like them to: by slowing spending. And why not?</s>LYNN FRANCO, CONFERENCE BOARD: Because all factors are so positive at this moment. You know, inflation is relatively nonexistent; even interest rates themselves with the recent hikes still remain at historical lows.</s>MESERVE: And the soaring stock market has given many Americans more money to spend. Consumer confidence did dip in February, but is down only slightly from its all-time high. Even home-building, considered the most interest-sensitive sector of the economy, hasn't taken a serious hit yet. (on camera): What does it all mean? That if there is an interest rate hike today, it probably won't be the last. The Federal Reserve Board is likely to keep moving them up until consumers put their wallets away. Jeanne Meserve, CNN, Washington.
Another Interest-Rate Hike Not Likely to Daunt Consumers Yet