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The Economic Times

Business / The Economic Times

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US economy enters higher-rate era as inflation, AI boom persist

The US economy may be entering a prolonged period of higher interest rates as persistent inflation, government borrowing and massive AI infrastructure investment lift demand for capital. Rising Treasury yields are keeping mortgage and other long-term borrowing costs elevated, even as the Federal Reserve weighs its next moves on short-term rates.

21 Sep 2026 10:35 am