5 Things to Expect from the Fed Signaled Inflation Increases

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After many years of historically low-interest rates following the 2008 financial crisis, it seems that surging inflation will force the Federal Reserve to increase its rates.

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Rate rises have implications for businesses and households alike, so here are 5 things to expect from the increases and the knock-on effects.

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US Dollar Strengthening

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Oil and Other Energy Prices Rising

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Bonds can be a good predictor of prices and inflation. The interest rates that bonds offer to investors partly depend on how much inflation a country is experiencing.

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House Prices Declining

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Bad news for businesses means bad news for their shareholders. Higher interest rates could be one reason (among many more) why the stock market has declined since the start of 2022, and it may mean the trend is likely to continue.

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5 Things to Expect from the Fed Signaled Inflation Increases

After many years of historically low-interest rates following the 2008 financial crisis, it seems that surging inflation will force the Federal Reserve to increase its rates.

Rate rises have implications for businesses and households alike, so here are 5 things to expect from the increases and the knock-on effects.

US Dollar Strengthening

What we’ve seen so far is the product of various factors — inflation and interest rates increases are playing a role in the value of the US dollar, but so are international affairs.

Oil and Other Energy Prices Rising

Rising prices and oil are interconnected — higher inflation pushes oil prices up, but more significant oil prices raise prices elsewhere since almost everything in the economy relies on oil.

Bonds can be a good predictor of prices and inflation. The interest rates that bonds offer to investors partly depend on how much inflation a country is experiencing.

US Bond Rates Increasing

House Prices Declining

Less demand for houses should theoretically mean that house prices fall (assuming that supply remains around the same).

Bad news for businesses means bad news for their shareholders. Higher interest rates could be one reason (among many more) why the stock market has declined since the start of 2022, and it may mean the trend is likely to continue.

Stock Prices Decreasing

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