Planned Solutions

In this episode of the Planned Solutions Incorporated Podcast, Central banks have increased interest rates around the globe in an effort to bring down inflation. Now the Federal Reserve may be at the end, or getting close to the end, of its interest rate hiking cycle. However, the impact of higher long-term interest rates is not fully reflected in the financial or economic data, which will only occur when low-interest rate debt must be paid off or rolled over at higher interest rates. This impact will depend on debt management at the business and household level and the future path of interest rates. Also, Long-term interest rates have moved up recently as investors fear that large government deficits will require significant borrowing in the coming months. When government borrowing increases it often pushes up interest rates as the government must offer to pay higher rates to attract the funds it needs to borrow. This can also push out private borrowers as they are unable to compete with the government for