Since President-elect Donald Trump’s surprising election victory this month, financial markets have sent a forceful message that the era of super-low interest rates is coming to a close.
Mortgage rates have shot up. Bond yields have jumped to their highest levels in a year. And the dollar has surged against other major currencies to values unseen in more than a decade.
Those developments have been fueled by expectations of stronger economic growth and higher inflation from Trump’s promises to cut business taxes, reduce regulations and increase defense and infrastructure spending.
His plans triggered a post-election stock market rally...