Is it better to have high interest rates or low interest rates? It depends on whether you’re a borrower or a saver.
If you’re borrowing money to buy a home, get an education or fund a business, low interest rates are appealing. If you’re saving for your future or using interest from interest-earning assets such as bank accounts or investments, higher interest rates look better.
The Federal Reserve sets the interest rates at which banks borrow. This trickles through the rest of the economy, impacting rates on consumer bank accounts, mortgages, business loans, bonds and other accounts and debt. There isn’t necessarily an immediate impact throughout the economy, though. Some rates, like interest rates on credit cards, might see little or no change.
Historically, interest rates and stock market…
