Capital Ideas

Investment insights from Capital Group

Interest Rates
Despite recent fed hikes, interest rates remain low

10 year treasury chart

The Federal Reserve has raised its policy rate four times since December 2015. But despite these moves, long-term interest rates remain roughly where they began, continuing a range-bound trend that has lasted years. Since 2012, the 10-year Treasury yield has touched 2.25% every year, often multiple times. Long-term rates may drift higher ― especially as the Fed starts to reduce its balance sheet over the coming months ― but are likely to remain lower for longer from a historical perspective.

Past results are not predictive of results in future periods.

Our latest insights


Hear from the investment team.

Don't miss out

Get the Capital Ideas newsletter in your inbox each week


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants' plan provider or employer.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.