“While there is uncertainty about how effective interest rates are, there is consensus among economists that raising interest rates does lower inflation somewhat. However, interest rates are a blunt tool and rising interest rates can have widely varying impacts on households and businesses depending on their financial situation. For example, someone who wants to buy a house in early 2024 with a 7% mortgage rate is severely disadvantaged relative to someone who bought a house in 2021 with a 3% mortgage rate,” said economics professor Aeimit Lakdawala. Full Article