Yale Insights: Should I Wait to Get A Loan? Many borrowers mistakenly believe they should wait for the Federal Reserve to officially lower interest rates before taking out long-term loans, hoping to secure lower rates. However, according to Yale Insights, research shows that long-term rates already reflect anticipated changes in short-term rates, so waiting might be unnecessary. This misconception can undermine the effectiveness of Fed policy, as borrowers rush to lock in rates before expected increases, inadvertently fueling inflation. Even sophisticated investors and corporate managers often make this error, assuming long-term rates will follow the path of short-term rate changes. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Fed Holds Rates Steady, Hints at Easing Monetary Policy Soon READ MORE Cheap Trips to Costly Getaways: The Potential Impact of Fed Rate Cuts on U.S. Travelers READ MORE Bank of America's Largest Shareholder Berkshire Hathaway Offloads Another $228.7M READ MORE U.S. GDP Growth Slows to 1.3% in Q1 Amid Weaker Consumer Spending READ MORE Golden Surge on the Horizon: UBS Predicts a 10% Leap Amid Rate Cut Speculations READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment