Economics

Why Do Banks Increase Interest Rates During Inflation?

Interest rates are its primary weapon in the fight against inflation. According to Yiming Ma, an assistant finance professor at Columbia University Business School, the Fed does this by determining the short-term borrowing rate for commercial banks, which subsequently pass those rates on to consumers and companies. This increased rate affects the interest you pay

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Which Sectors Recover First After A Recession?

Healthcare, food, consumer staples, and basic transportation are examples of generally inelastic industries that can thrive during economic downturns. During a public health emergency, they may also benefit from being classified as critical industries. In a market meltdown, which sectors do well? Consumer cyclicals and financials are the greatest sectors to invest in during this

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