Moody’s Zandi Warns That Higher Interest Rates Are Already Damaging the Economy

Moody’s Analytics Chief Economist Mark Zandi warns that higher interest rates are already beginning to weigh on the U.S. economy. He points to rising Treasury yields and mortgage rates as increasing borrowing costs for businesses and households. Zandi says prolonged high rates could lead to more corporate bankruptcies and greater financial pressure on consumers with credit-card and home-equity debt. He cautions that if rates remain elevated into next year, the economic slowdown could become significantly more severe.