Rate: Increases to 14 percent
The details: A recession, at the time considered the worst since the Great Depression, grips the nation at the beginning of the year. Under Chairman Paul Volcker, the Fed is determined to quell inflation that has risen to more than 14 percent. It sets the federal funds rate in January at 14 percent, then boosts it as high as 20 percent two separate times during the year.
More On The Economy:
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused. We do not permit the inclusion of hyperlinks in comments and may remove any comment that includes a hyperlink.
Many borrowers tap their equity to pay for things such as home improvements.
... Read more