In May, we briefly covered interest rates and their relationship with utility stocks, especially during an economic downturn. Utility stocks are desirable during these downturns because of low interest rates. Lower rates allow utility companies to invest because of the decreased cost of capital. Investing in infrastructure equals growth for….
Tag: Interest Rates
This article was written to help understand what the changing interest rates mean. The Federal Reserve Board has the power to change interest rates and uses this power to affect consumer spending. When interest rates are low, borrowers are more likely to take out a loan to make big purchases. ….
In March, the head of the Federal Reserve, Janet Yellen, announced a less aggressive plan regarding interest rates for the rest of 2016. Back in 2015, the same Federal Reserve Committee was leaning towards more growth and stability when talking about the U.S. economy. They believed the economy had gained….