{
  "id": 11309899,
  "title": "The Fed's long-term interest rate problem",
  "url": "https://urgent.news/2026/10/01/the-feds-long-term-interest-rate-problem",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-01T16:48:10.000Z",
  "source": {
    "name": "Axios",
    "slug": "axios",
    "url": "https://www.axios.com/2026/10/01/federal-reserves-long-term-interest-rate-problem"
  },
  "original_language": "en",
  "account": "The relentless rise in long-term interest rates is beginning to impact various sectors of the economy, according to Kansas City Federal Reserve President Jeff Schmid. He noted signs of friction in long-market credit users, including multifamily housing and commercial lending. Schmid also mentioned that mortgage rates are starting to affect home prices, highlighting the relationship between credit costs and property valuation. At a Federal Reserve Bank of Richmond conference in Asheville, North Carolina, Schmid, Richmond Fed President Tom Barkin, and Boston Fed President Susan Collins discussed the factors contributing to rising borrowing costs. Barkin suggested that the substantial demand for artificial intelligence (AI) investments is a key driver, while Collins attributed the sustained economic growth to AI investment despite the higher borrowing costs. While the Fed continues to face challenges in distinguishing between demand and supply-driven inflation, it remains uncertain whether investment will maintain its current pace. Schmid likened the Fed's situation to a seven-layer dip, noting that the excessive \"beans\" (referring to strong demand) are causing a shortage of \"chips\" (representing cooling mechanisms like stable prices).",
  "summary": "The relentless rise in long-term interest rates is starting to have effects on more parts of the economy, Kansas City Fed president Jeff Schmid told Axios Thursday. \"You're starting to see some friction in some of the long-market users of credit,\" he said, pointing to multifamily housing and commercial lending. \"Even on the mortgage rate side, it's starting to affect home prices, which is how the…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}