A changing interest rate environment can result in significant changes on Wall Street as well as for the broader U.S. economy. After interest rates were cut in the wake of the 2020 pandemic to near-zero levels, borrowing became easier but inflation became a serious challenge. More recently, the U.S. Federal Reserve raised rates to fight that inflation problem, but made it more expensive to borrow as a result – illustrated most clearly by the fact that U.S mortgage rates hit their highest level in more than 23 years several months ago.