Fifty-four percent (54%) of Americans now say interest rates will be higher a year from now, a 20-point jump from April.

A new Rasmussen Reports national telephone survey finds that only seven percent (7%) believe interest rates will be lower, down five points from the previous survey. Twenty-six percent (26%) think they will remain about the same, a 19-point drop from three months ago.

Investors and higher-income Americans believe even more strongly that interest rates will rise.

One explanation for these findings is that just 39% of adults are at least somewhat confident that the Federal Reserve Board will be able to keep inflation under control and interest rates down, as Fed Chairman Ben Bernanke pledged to Congress last week.

Fifty-five percent (55%) are not confident in the Fed’s ability to honor that pledge.

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Investors are more confident in the Fed than non-investors. Women have less confidence than men.

Fifty-two percent (52%) of Democrats are at least somewhat confident in the Fed to keep inflation and interest rates under control, compared to 22% of Republicans and 39% of adults not affiliated with either party.

Nearly one-out-of-three Americans (32%) say they owe more money than they did a year ago, up seven points from April. Twenty-six percent (26%) say they owe less, while 39% owe about the same amount as they did 12 months ago: These findings have changed little from the previous survey.

Bernanke, who repeated his promise at a town hall again this week, insists that inflation is not a problem and that the Fed is ready to deal with it should it become one. But 83% of Americans remain concerned about inflation, including 50% who are very concerned.

Just 16% of adults are not concerned. Concern is down very slightly from April.

Thirty-two percent (32%) say the interest rates they are now paying are higher than a year ago, while 13% say they are lower. For 49%, the interest they’re paying is about the same.

Eighty-four percent (84%) of Americans say they are paying more for groceries than they were a year ago. Just percent (10%) disagree and say they are not.

Sixty-four percent (64%) expect to be paying even more got groceries a year from now. Six percent (6%) say grocery prices will be lower by then, and 22% say they will be about the same.

The findings for both the grocery questions are little changed from April.

Forty-six percent (46%) of Americans say the chairman of the Federal Reserve Board already has too much power over the economy, even as the Obama administration proposes expanding the Fed’s regulatory controls.

Confidence in the U.S. banking system has fallen again despite billions in federal bailout funds and record profits declared this month by two of Wall Street’s top financial firms.

Fifty-four percent (54%) continue to blame President George W. Bush for the nation’s continuing bad economy, but 39% say President Obama’s policies are the cause.

Voters increasingly believe the $787-billion economic stimulus plan proposed by the president and passed by Congress in February is hurting the economy more than helping it.

Still, 45% of adults believe the economy will be stronger a year from now, to up three points from May and six points from the first of the year. Thirty-six percent (36%) say the economy will be weaker in 12 months’ time, while nine percent (9%) expect little change.

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