Summary: Interest rates expected to increase significantly over the next 25 years. Negative

From Investing.com: 2025-05-05 05:53:00

Interest rates have been historically low in recent years, but this is not the norm. For decades, rates of 4% and higher were considered normal, with rates of 5.75% or higher being common from 1967 to 2000. The return to a “normal” range of 4% or higher has doubled Federal interest payments on debt, leading to increased financial strain. As rates rise, households will struggle to service debt and spend more, potentially leading to a recession. Interest rates are not only tied to inflation but also to risk, with lenders becoming more cautious in the face of speculative excesses and credit bubbles.



Read more at Investing.com: 25 Years of Higher Interest Rates Ahead?