The Fed is expected to raise interest rates by .25% this month due to lower unemployment, and strong hiring numbers. Rates have been at rock bottom lows since the Financial Crisis.
Background: The top 10 states in GDP contribute to nearly 60% of the economy. Certain areas of those states (The Bay Area and LA for California; NYC for New York) are experiencing booming growth - an influx of new people, demand for housing and services. In the Bay Area, housing prices are finally stabilizing but not after a huge rise since 2008.
The problem: We've all heard about white, working class voters this past election. They are struggling economically. Some of them have placed their faith in Donald Trump. We'll see what he can do. In the short term, the Fed may have a greater impact than Trump. If we continue to see growth in GDP and employment numbers, we'll see interest rates rise to curb inflation and high stock and housing prices or keep them low for the rest of the US to catch up.
The solution: One size doesn't fit all in our economy and interest rate policy is no different. Everyone will feel the burden of higher interest rates - credit card payments, adjustable rate mortgages, starting a business, borrowing money for their kids' college to go up, but those who are struggling the most will feel it more. There is no good solution in this case.