The National University System was established in 2001 to meet the emerging challenges and demands of education in the 21st century. The System is uniquely aligned to connect a diverse population of students to a network of innovative educational programs that are relevant to their lives, careers, and the marketplace and are delivered in a format that respects competing life priorities.
Roger Showley, U-T SAN DIEGO
Friday, July 18, 2014
Kelly Cunningham, National University System
Answer: YES
Low interest rates resulted from the Fed's QE program. The economy, dependent upon the low rates, caused stock prices to surge with low borrowing costs inflating corporate profits. Real estate was also lifted by the artificially low rates and institutional investors are using easy financing to buy single-family homes and rent to residents no longer able to afford buying. As the Fed stops bond buying, rising interest rates will severely pressure markets and banks will absorb considerable losses on Treasury and mortgage-backed bond portfolios. Pressures on the dollar will likely trigger an exodus of foreign investment and significantly increase import prices.
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