The Most Important Thing About Interest Rates

MacIntosh: The most important thing to appreciate about interest rates is what's called the term structure of interest rates. He says short-term interest rates are always lower than long-term interest Rates. MacIntosh: But right now, in the United States, the yield curve is inverted. And that means a central bank has decided the rate of inflation is too high and they're going to increase interest rates so it doesn't cause inflation.