Is Apprehension About Rising Rates Misplaced?
Conventional wisdom is that higher interest rates would be disastrous for a still-recovering economy.
Is that mindset right?
Maybe not.
Whither Interest Rates?
If rates are rising because the economy is stronger, that’s a positive, not a negative.
As one loan officer I work with said, “If you’re hoping for dirt-cheap interest rates . . . you should be rooting for a recession.”
P.S.: the exception to rising rates correlating with a stronger economy?
When the Fed is fighting runaway inflation, as was the case during the early 1980’s.
