Fed Hike Signals End of Ultra-Low-Rate Era as Inflation Sticks and Growth Accelerates

The Federal Reserve raised its policy rate amid stubborn inflation and a growing economy, signaling a shift to a higher-rate regime driven by AI investment and strong consumer spending. Longer-term borrowing costs have risen, with the 10-year yield above 5% and mortgage rates around 7%, suggesting the era of ultra-low rates may be over as supply bottlenecks and robust demand push rates higher.