this post was submitted on 04 Aug 2023
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Apple

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[–] CupDock@lemmy.world 14 points 1 year ago (1 children)

The Fed has massively increased interest rates in the past year or so to fend off a recession. That's in part what led to the recent bank failures, because the banks made stupid investments hinging on low interest rates. As a whole, it's been working wonders for the economy. Things have been stabilizing and fears of a recession have lowered.

In short, yes, 4.15% is on the good side, but it's also pretty common in the US right now. Some savings accounts have 5%+ last time I checked, though those are harder to come by and often have stupid rules attached.

[–] ScoobyDoo27@lemmy.world 6 points 1 year ago

One minor correction, interest rates have been raised to fight inflation. Concerns of a recession came because when you raise rates people spend less and the economy slows. But, Americans being Americans, they haven’t really slowed down their spending so recession concerns haven’t been a huge issue.