Economics
How a Year of the Fed’s High Rates Has Affected the US Economy
The central bank has kept borrowing costs at a more than two-decade high for a full year. The results have been somewhat surprising.
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In the year since the Federal Reserve brought interest rates to a more than two-decade high, the central bank has succeeded in taking the steam off of an overheated US economy. But higher borrowing costs have also had some unexpected effects.
Higher-income households are reaping the benefits of a booming stock market and rising home values. Corporations are borrowing at a fast clip, and consumers continue to spend.