Report
Patrick Artus

Has the modest rise in interest rates had visible negative effects in the United States?

The Federal Reserve has chosen to partially normalise its interest rates, while the ECB has kept its interest rates at zero. This modest increase in US interest rates triggered a lot of concern; has it led to visible negative effects in the United States? Share prices have weakened but real estate prices have not; Lending to households has been affected slightly ; Corporate bond issuance has weakened; Corporate investment remains strong; Housing investment has dipped; The household savings rate has hardly changed; Household defaults on other forms of credit and corporate defaults have not been affected; Interest payments on the public debt and defaults on auto loans have risen. Altogether, even though the rise in US interest rates has been modest, it has had an economic cost.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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