U.S. Treasury Yields Keep Rising. Here's Why That's Not Necessarily a Good Thing
The Federal Reserve (Fed) is the U.S.'s central bank, responsible for creating and enforcing monetary policies, overseeing financial institutions, and maintaining the financial system's stability. Part of making sure the financial system is stable is keeping inflation at decent levels, which has been an issue for the past couple of years.
To fight high inflation, the Fed has been consistently raising interest rates. As of July 2023, interest rates have increased 11 times since March 2022, going from 0.25% to 5.50%. For investors in fixed-income investments, rising interest rates have translated to higher rates on U.S. Treasuries and deposit accounts like checking and savings accounts. However, these increases may spell trouble ahead.
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Source Fool.com
