Higher rates and Fed uncertainty pressure household finances

U.S. borrowing costs remain elevated, with the average 30-year mortgage rate at 6.66% and government borrowing costs at a 25-year high. Following Fed Chair Kevin Warsh’s hawkish remarks, market-implied odds of a September rate hike rose to roughly 57–58%; inflation near 3.7% and uncertainty over tariffs, deficits, war, and AI investment leave household and market risks unsettled.