Those of us who buy “on time” and pay interest charges prefer low interest rates. But there is another side of that equation. Individuals – including some retirees – and businesses that rely on interest income want higher rates.
The Federal Reserve, whose decisions set the base levels on interest charges, has decided to keep interest low for the next two years as our economy continues to falter. That’s fine for borrowers but not so good for some other people.
The ideal is for interest rates to be low enough to energize commerce, yet high enough for lenders and investors to benefit, too.
We are not currently in an ideal situation.