Will US interest rates quickly rise?

Opening Argument

agsragsr 601 PtsPremium MemberTechnology Community Moderator
edited May 15 in Economy
Why mortgages, other interest rates could go up faster than you think

Interest rates may be going up even faster than you think.

That's because the Federal Reserve, in the minutes from its last meeting, announced that it would begin to shrink its balance sheet, ending some of the extreme measures it took to save the economy during the financial crisis.

The Fed balance sheet grew from about $1 trillion before the crisis to $4.5 trillion currently, as the central bank purchased Treasurys and mortgages to help the economy and keep interest rates low. The Fed carried out such "quantitative easing" even as it held interest rates at zero for years.

  1. Will US interest rates quickly rise?

    2 votes
    1. Yes
    2. No
Live Long and Prosper

Status: Open Debate


  • agsragsr 601 PtsPremium MemberTechnology Community Moderator
    Premium MemberTechnology Community Moderator
    The rates were artificially held at near zero, and there is a good chance that Fed will quickly start a program of raising the rates, and that may happen very quickly,
    Live Long and Prosper
  • ale5ale5 147 PtsPremium Member
    Premium Member
    I wouldn't be so sure that interest rates will jump drastically. There is much uncertainty in the economic environment and Fed will not so quickly reverse a long standing policy of close to 0 interest rates until there is really good evidence of strong economy. We are far from there.
    It's kind of fun to do the impossible
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