
How Interest Rates Affect Pensions
2022 has been an eventful year in financial markets. To cool inflation currently running at multidecade highs, the Federal reserve has enacted a series of short-term interest rate hikes, raising rates from 0.25% in March to the range of 3.75%-4% as of November. With rising interest rates impacting borrowing costs and, as a result, potentially impacting consumer demand and corporate revenue, stock markets have fallen year to date.