No analyst or economist (or journalist) can know the future for certain. But if the past several months are any indication, it looks like we’ll continue to see a healthy increase in interest rates throughout the rest of 2022.
There are quite a few macroeconomy mechanisms that can affect interest rates. Let’s break down how these different factors affect whether interest rates will rise.
Interest rates usually go up when the Federal Reserve says so
Historically — and as shown this year by the many, many bank announcements and press releases we’ve received — when the Federal Reserve increases the federal funds rate, interest rates go up on products that you get from banks, like loans and deposit accounts.
While this means it can be more expensive to borrow money for major purchases like a car, house or home remodel, it also means that banks are likely to offer higher interest rates to customers on checking accounts, savings accounts and certificates of deposit.
This has been good…
This article was written by Chanelle Bessette and originally published on www.nerdwallet.com