Today, Explained Get used to higher interest rates
22 snips
May 4, 2023 
Talmon Joseph Smith, an economics reporter at The New York Times, dives into the latest interest rate hikes and their economic ramifications. He discusses the rising costs of borrowing for consumers and businesses, and how these dynamics intertwine with ongoing monetary policy debates. Exploring the historical peaks of interest rates, he connects this to the emotional impacts of AI advancements. The episode contemplates the uncertainty surrounding future economic conditions and the challenges faced by various sectors amidst these changes.
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Interest Rate Context
- 5.25% interest rate is high compared to the 2010s, but not historically.
- The rapid increase from near-zero to 5.25% in just over a year is significant.
Impact of Rate Hikes
- The Federal Reserve's rate hikes aim to curb inflation by increasing borrowing costs.
- This can impact businesses, home buyers, and the overall labor market.
Noel's House Purchase
- Noel King bought a house because of the low 3% interest rate.
- She wouldn't have bought it if rates were higher.