Federal Reserve Expected to Raise Rates in the Coming Year: Bankrate Survey

Originally published on October 7, 2021, by Sarah Foster for BankRate.com.

The U.S. economy’s sharp rebound from the pandemic that sent inflation soaring to its highest in decades might push up interest rates over the next year, according to a new survey from Bankrate.

Experts see the 10-year Treasury yield climbing to 1.9 percent a year from now, according to the average forecast in Bankrate’s Third-Quarter Economic Indicator poll. Meanwhile, the majority of experts (63 percent) say the Federal Reserve will keep interest rates at rock bottom over the next 12 months, though that’s the smallest majority since the coronavirus pandemic began.

The U.S. central bank influences interest rates on auto loans and credit cards to savings accounts to certificates of deposit (CDs), while mortgage rates are directly tied to the 10-year Treasury yield.

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