The Wall Street Journal's quarterly survey reveals that forecasters expect borrowing costs to remain elevated for an extended period. Inflation, ongoing Federal Reserve rate increases, and rising government debt are the primary drivers behind this outlook. Economists surveyed believe these combined factors will prevent bond yields from returning to pre-pandemic lows anytime soon. The consensus suggests a prolonged period of higher yields, impacting everything from mortgage rates to corporate borrowing expenses.
Investors are advised to adjust their portfolios accordingly, as the era of ultra-low interest rates appears to be over for the foreseeable future.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing