Could rising iterest rates be a good thing for our economy? NO, Says top Wall Street strategist Edward Yardeni, "If bond yields get up to 4.5%, so not much higher than they are now, I think we would see a real decline in mortgage refinancing, which would threaten the viability of the economic recovery."
Even so others say YES, a rising interest rate is nothing to be afraid of, especially in recession, in actuality rising rates are usually a good sign says economics. Rising rates would almost push consumers to buy. Everything that is happening today happened yesterday.
Interest rates always rise when things are improving," says Lakshman Achuthan, managing director at the Economic Cycle Research Institute. "If higher interest rates choked off recoveries, then we would always be in recession.
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