Why are interest rates going up
The Federal Reserve influences interest rates in the economy, but its actions may not always align with the actual rates individuals or businesses experience in the market. Even if the Fed cuts its benchmark interest rates, other factors can cause rates, such as mortgage rates or bond yields, to rise. Here are some key reasons why rates might go up despite Fed rate cuts:
1. Inflation Concerns:
If inflation expectations are rising, lenders demand higher interest rates to compensate for the loss of purchasing power. Even with a Fed cut, inflationary pressures may push long-term rates up as…
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