Rising Interest Rates: A Signal of Economic Recovery?

The Fed slowly removes the training wheels.

The Federal Reserve has finally decided to raise interest rates for the first time in nearly a decade, leaving many in the U.S. and across the world holding their breath to see how the economy responds. The change signals confidence from one of the most powerful economic regulators in the world that the market can now stand steady after years of crawling back toward normal.


The move is slight, only changing rates by 0.25 percentage point to a range of 0.25-0.5 percent. And there’s no need to worry that the rates will go skyrocketing after this small change. The Fed has told the public that it will be raising rates slowly, giving the economy plenty of time to adjust to the differences.

Many are celebrating the decision, especially those who have been looking for a sign that the economy is finally stable again.

Many are celebrating the decision, especially those who have been looking for a sign that the economy is finally stable again. People who have been putting money away into savings accounts and certificates of deposit will likely see an increase in their returns in the wake of the rate hike. Additionally, U.S. travelers might see a better exchange rate as a result of the change.

But even for those looking to buy a house or a car, there is still time to shop around, since the rates won’t be skyrocketing upward for quite a while yet. There might still be some bumps in the stock market to work out, but experts say that overall, mortgages should stay at reasonable prices for a while.

However, the economy as a whole is a pretty high-level place from which to be talking about the aftermath of the Great Recession. Some wonder, for instance, about the long-term impacts of underemployment for Millennials that was exacerbated by the Recession. Only time will tell if the world can return financially to what it looked like before the late 2000s.

Develop mindfulness to boost your creative intelligence

Sharon Salzberg, world-renowned mindfulness leader, teaches meditation at Big Think Edge.

Image: Big Think
Big Think Edge
  • Try meditation for the first time with this guided lesson or, if you already practice, enjoy being guided by a world-renowned meditation expert.
  • Sharon Salzberg teaches mindfulness meditation for Big Think Edge.
  • Subscribe to Big Think Edge before we launch on March 30 to get 20% off monthly and annual memberships.
Keep reading Show less

Google Maps apologizes for going rogue in Japan

The navigation tool has placed a school in the sea, among other things.

Strange Maps
  • Google has apologized for the sudden instability of its maps in Japan.
  • Errors may stem from Google's long-time map data provider Zenrin – or from the cancellation of its contract.
  • Speculation on the latter option caused Zenrin shares to drop 16% last Friday.
Keep reading Show less

MIT study: 24-hour fasting regenerates stem cells, doubles metabolism

This gives credence to the 5-2 diet, which has recently gained in popularity thanks to a large celebrity following.

Pexels, user @Deena
popular

Chances are you're probably thinking about food right now in some capacity. Maybe it's close to dinner and you're wondering what you are going to eat. Maybe you had a really good lunch and are fondly reminiscing about your BLT, or whatnot. Or maybe, just maybe, you're thinking about not eating food for a while. 

Keep reading Show less

A new theory explains Jupiter’s perplexing origin

A new computer model solves a pair of Jovian riddles.

(NASA/JPL-Caltech/SwRI/MSSS/Kevin M. Gill)
Surprising Science
  • Astronomers have wondered how a gas giant like Jupiter could sit in the middle of our solar system's planets.
  • Also unexplained has been the pair of asteroid clusters in front of and behind Jupiter in its orbit.
  • Putting the two questions together revealed the answer to both.
Keep reading Show less