rising interest rates

Even as prospects for the American economy brighten, consumers are about to face a sustained period of rising interest rates, economists say.

Economists say rising interest rates are an inevitable outcome of the nation’s ballooning debt and the renewed prospect of inflation as the economy recovers from the depths of the recent recession.

European stock markets were steady Thursday after sizable falls in Asia earlier as investors continued to worry that a global economic recovery later this year — the main driver behind the rally since March — could be choked off at birth by rising interest rates and oil prices.

Stocks fell moderately Wednesday after the government sold $19 billion in 10-year Treasury notes in a relatively weak auction.

There were plenty of bidders, but the government had to lure them in with a higher yield than the market had anticipated.

The yield on the benchmark 10-year Treasury note rose for the fourth time in five days, jumping to 3.96 percent from 3.86 percent late Tuesday.

Investors are worried rising interest rates will crimp the economy's recovery.