High Interest Rates Can Significantly Affect Markets
Interest rates have been growing over the past two weeks. Some analysts now see the possibility of moving to a more fundamental market. This can lead to higher and more normal levels of interest rates that will affect everything from mortgage home loans to commercial loans.
The US Federal Reserve is going to take an unprecedented step to reduce the balance that was created to save the economy from the financial crisis.
Last week, European Central Bank President Mario Draghi pointed to the less risky prospects for the European economy. Some officials said that their policy creates too easy financial environment, that is, interest rates should be higher.