Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 7th International Conference on Economic Management and Green Development
Series Vol. 40 , 10 November 2023
Open
Access | Article
Research on the Impact of U.S. Interest Rate Soaring
* Author to whom correspondence should be addressed.
Abstract
The Federal Reserve's tenth interest rate hike has further impacted the U.S. economy and society. Therefore, this paper analyses the current economic environment in the United States and the implications of high interest rates, as well as the link between high interest rates and US Treasuries against the background of the tenth interest rate hike by the Federal Reserve. The research uses information and data from the Federal Reserve, current news, and data from the US stock market as the basis for the analysis. This study concludes that high interest rates are unfavourable for the US economy in the short term, but have helped employment, mortgage repayment costs, and growth in some sectors.
Keywords
monetary policy, interest rates, US treasuries, financial markets, economies
References
1. Federal Funds Target Range - Upper Limit. (2023, May 29). https://fred.stlouisfed.org/series/DFEDTARU
2. Sticky Price Consumer Price Index less Food and Energy. (2023, May 10). https://fred.stlouisfed.org/series/CORESTICKM159SFRBATL
3. Fama, E. F. (1977). Interest rates and inflation: the message in the entrails. The American Economic Review, 67(3), 487-496.
4. González‐Aguado, C., & Suarez, J. (2015). Interest rates and credit risk. Journal of Money, Credit and Banking, 47(2-3), 445-480.
5. Jordan, B. D., & Kuipers, D. R. (1997). Negative option values are possible: The impact of Treasury bond futures on the cash US Treasury market. Journal of Financial Economics, 46(1), 67-102.
6. Kim, D. H., & Stock, D. (2014). The effect of interest rate volatility and equity volatility on corporate bond yield spreads: A comparison of noncallables and callables. Journal of Corporate Finance, 26, 20-35.
7. Stock, J. H., & Watson, M. W. (2008). Phillips curve inflation forecasts.
8. Fuhrer, J. C. (1995). The Phillips curve is alive and well. New England Economic Review, 41-57.
9. Von Hagen, J., Schuknecht, L., & Wolswijk, G. (2011). Government bond risk premiums in the EU revisited: The impact of the financial crisis. European Journal of Political Economy, 27(1), 36-43.
10. Edelberg, W. (2006). Risk-based pricing of interest rates for consumer loans. Journal of monetary Economics, 53(8), 2283-2298.
11. Ejsing, J., Grothe, M., & Grothe, O. (2012). Liquidity and credit risk premia in government bond yields.
12. Vo, L. V., & Le, H. T. (2023). From Hero to Zero-The Case of Silicon Valley Bank. Available at SSRN 4394553.
13. Kyriazis, N. A. (2022). Optimal Portfolios of National Currencies, Commodities and Fuel, Agricultural Commodities and Cryptocurrencies during the Russian-Ukrainian Conflict. International Journal of Financial Studies, 10(3), 75.
Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open Access Instruction).
- Volume Title
- Proceedings of the 7th International Conference on Economic Management and Green Development
- ISBN (Print)
- 978-1-83558-101-8
- ISBN (Online)
- 978-1-83558-102-5
- Published Date
- 10 November 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/40/20231981
- Copyright
- 10 November 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited