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Fed official Loretta Mester raises long-term interest rate prediction due to US economy strength, which may increase borrowing costs.
Federal Reserve official Loretta Mester has increased her prediction for long-term interest rates due to the US economy's sustained strength.
With the Fed's key lending rate at a 23-year high of 5.25-5.50%, aiming to control inflation, Mester raised her forecast for the equilibrium interest rate to 3.0%.
This could lead to higher borrowing costs for consumers and businesses, making it more challenging for Americans to repay mortgages and car loans.
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La funcionaria de la Reserva Federal, Loretta Mester, eleva la predicción de las tasas de interés a largo plazo debido a la fortaleza de la economía estadounidense, que puede aumentar los costos de endeudamiento.