Part 6/9:
On the surface, the Federal Reserve's decision to cut interest rates in 2024, with more cuts anticipated, seems aligned with a goal to alleviate financial burdens. However, contrary dynamics are at play. Despite these expected rate cuts, mortgage rates, credit card rates, and corporate borrowing costs have all risen. This paradox is largely attributed to a combination of persistent inflation fears and the rising national debt, prompting investors to demand higher yields on treasury securities as a protective measure.