The U.S. economy may be entering a prolonged period of higher interest rates as resilient growth, persistent inflation, heavy government borrowing and a surge in artificial intelligence investment put upward pressure on longer-term borrowing costs, AP reported.
US President Donald Trump renewed his criticism of the Federal Reserve after the central bank raised its benchmark interest rate on Wednesday. But economists say the Fed has less influence over longer-term rates than broader economic forces, including inflation, government borrowing and demand for capital, AP said.
