Generally, these two forces move in reverse instructions, with rising interest rates sometimes causing downward strain on inventory costs, whereas falling charges tend to spice up the market. This relationship, nevertheless, is not that straightforward, as we'll show below. Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, the place he launched his own monetary advisory agency in 2018. Prolonged durations of very low rates of interest can result in concerns within and beyond the Fed about asset bubbles and extreme risk-taking in monetary markets.