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Impact of Interest Rate Hike Varies Nationwide With PM-Business Mirror, Bjt

May 19, 1994

Undated (AP) _ As economists and market analysts scramble to determine what the biggest interest rate hike in more than five years means for investors in stocks and bonds and for corporate borrowing, ordinary people are trying to figure out the changes too.

Random interviews with Americans from Salt Lake City to Boston show a range of opinion as to whether the higher cost of borrowing is good or bad.

″It hasn’t affected me yet. I just refinanced my house, though, so I’m feeling lucky.″

- Electrician Steve Scalzi, 29, as he stood by his van in Boston’s financial district.

″I think (interest rates) going up is good because we all spend too much. It will encourage us to save. I’m a saver anyway. I want to see the rates go up.″

- Michael Rickles, a 47-year-old attorney browsing at a Gap store in downtown Atlanta.

″If it goes up a lot I won’t use my credit card at all - only in emergencies.″

- Shirley Dolliole, 21, a recent graduate of Loyola University-New Orleans who was visiting Atlanta.

″I don’t think people really think about it. There’s nothing you can do. You just have to live with it.″

- Denise Penn, 31, as she shopped for flowers in the garden center of a Kmart store in St. Clair Shores, a suburb of Detroit.

″It sounds like this is going to slow down the economy. I’d just as soon the interest rates stay lower because I don’t have much money in the bank.″

- Kaye Cook, 33, of St. Clair Shores, said as she walked from Standard Federal Bank in Grosse Point Shores, a Detroit suburb.

″I have an adjustable-rate mortgage, and my house payment is going up $80 or $90. It’s going to hurt me. But they’re just trying to do their job and control inflation.″

- Jim Scheid, 36, an elementary school physical education teacher who was rounding up children outside the Metrodome in Minneapolis.

″We were going to buy a boat this summer but with the interest rates going up, we probably won’t. It does make a difference. You end up paying a lot more.″

- Lou Hoesly, a homemaker and part-time bus driver, said while standing outside the Metrodome.

″I’m worried because our mortgage will probably go up but our salaries will be the same. I kept telling my husband he should get a fixed rate.″

- Julia Rivera, 40, who works at a flower stand in a bustling downtown Los Angeles office building.

″I’ve been trying to buy a car for two months now, but the loan rates are too high.″

- Vladmir Jimenez, 28, who works at the Pasqua coffee bar in downtown Los Angeles.

″I don’t like it. I think they’re overreacting.″

- Thomas Sullivan, a 37-year-old account executive for a business magazine, said outside the Mellon Bank Downtown in Pittsburgh.

″I wasn’t in any big hurry to refinance my home before, but I’m going out and getting it done now.″

- Gifford Samples, 73, who works at Brown’s Shoes in downtown Topeka, Kan.

″It’s not affecting me because I’m 80 years old and hopefully by my age you have your house paid for. But it’s the young people I worry about.″

- Edward G. Hale, a retired neurosurgeon from Salt Lake City.

″I am going through a divorce and just refinanced my house. Interest rates went up a point and it cost me a lot - thousands of dollars.″

- Mary Hart, 40, said at a downtown mall in Salt Lake City.

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