Why Rising Interest Rates Are Good News for CME Group
The economic story of the past few months has been inflation, which is rising at its highest level in over a decade. Exacerbated by pandemic-driven supply chain bottlenecks, inflation has driven up the price of everything from real estate to lumber. To respond to inflation, the Federal Reserve is taking measures that will push up interest rates.
While rising rates are normally a negative for companies in general since they increase borrowing costs and generally depress the economy, rising rates are good news for derivatives giant, CME Group (NASDAQ: CME).
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Source Fool.com
