The Sidney Sun-Telegraph - Serving proudly since 1873 as the beautiful Nebraska Panhandle's first newspaper

How should you respond to higher interest rates?

 


If the Federal Reserve (Fed) raises short-term interest rates this year, as many financial professionals predict, what will it mean to you? As a consumer, you might experience the “ripple” effects if long-term interest rates eventually follow suit, affecting mortgages and other loans. But as an investor, you might quickly feel the impact of a move by the Fed — especially if you own bonds.

In fact, the value of your existing bonds might drop noticeably if interest rates were to rise. That’s because no one will give you full price for your lower-paying bonds when new bonds are being i...



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