Why are investors so fixated on interest rates? If you follow the financial markets regularly, you’ll notice how laser-focused the investment community is on what the Federal Reserve is doing, how bond markets react, and what it all means for interest rates.
But why are interest rates so important? What does a change of a quarter percentage point mean? As a matter of fact, a quarter-point hike or cut in rates is a lot more meaningful than you may have suspected.
August 20, 2019