The interest rate has an impact on the stock market and it has an impact on the housing market. Currently, as of May 24, 2021, the financial news has been reporting that there is inlaftion being found within many industries in America. In the past, whenever, we have had inflation in America, The Central Bank has raised interest rates to ‘choke’ off’ the economy to cool infationary pressures.
If the Central Bank does increase the interest rates then what do you think will happen to the stock market and why? What will happen to the housing market and why? Will this be good or bad for the economy and why? Will this be bad or good for baby boomers who he or will be recently retiring? Will this be bad of good for those who are just now entereing the work force? Perhaps you might think that the Central Bank will not raise interest rates becasue of global competition can keep inflation in check, but from what I am hearing in the financial news is that there are shortages of goods around the world.
