As a short-term stopgap to help dig the United States out of a disastrous economic situation over the past few years, the federal government has initiated artificially low interest rates and an inflation of the country’s money supply. These measures, it is known, are only temporary and must be counteracted at some point to continue the nation’s economic recovery.
Congress is attempting to come to a decision as to when interest rate and money supply tapering will commence. For the short term, this will mean that interest rates on loans will increase. Getting approval for loans will become more difficult, and some inflation in the prices of goods and services will increase. These are the growing pains associated with getting out of a recession and reestablishing economic growth, but what does it all mean for investors? Continue reading