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Statements from the Federal Reserve on consumer psychology can be mixed. On one hand, consumers may be fearful of the rate increase if they are contemplating making a major purchase, such as buying a house. Other consumers my feel that the increase is a sign that the Federal Reserve is making an attempt to control inflation by adjusting rates. Either response will effect how the consumer reacts. Some consumers will adjust their buying habits and reduce expenditures to save money. Others may hurry and make those large purchases before the rates rise. By releasing their intentions early, the Federal Reserve allows time for that opportunity. Sometimes the announcement can cause a marked drop in consumer spending before growing costs become too great a burden for an individual. Either way, the announcement before the actual increase is an early indicator for American consumers trying to control their finances.