What happens when interest rates increase?
What happens when interest rates increase?
- November 9, 2022
- Eric Swanson, economics, LinkedIn News, Nov. 9, 2022
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The main purpose of raising interest rates is to discourage spending. Many consumers respond to higher interest rates by waiting until they decrease to make major purchases. “During the pandemic, [the Fed] lowered interest rates to give the economy a boost, and now that the economy's kind of going too strong — as evidenced by the inflation — they're trying to slow the economy down by raising interest rates,” said Eric Swanson, an economics professor at the University of California, Irvine.
For the full story, please visit https://www.linkedin.com/pulse/what-happens-when-interest-rates-increase-/.
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