The Federal Reserve could soon raise interest rates again. Rising interest rates are not good for the stock market, and fears about rate hikes have caused the market to decline in the last few days.
When interest rates rise, the value of assets such as stocks and property decline. That’s because competing asset classes (like bank accounts) have more attractive yields. Businesses that are funding their growth with cheap credit will no longer have access to historically low debt. This could slow growth for some businesses.
