An increased risk of a sudden fiscal crisis, in which investors demand higher interest rates.

The deal, however, also showed that the investors were still demanding high interest rates and some extra sweeteners.

Fearing inflation, they could demand higher interest rates, the opposite of what the Fed wants to accomplish.

"It is the expectation or fear of inflation that causes investors to demand higher interest rates."

If investors anticipate future inflation, however, they will demand higher interest rates on government debt, making public borrowing more expensive.

Ordinarily, however, longer loans demand higher interest rates, but there are exceptions.

Letting the dollar fall was a gamble on Washington's part because foreign investors might demand even higher interest rates.

If the creditors demand higher interest rates, business activity could be slowed, adding to unemployment and also damaging the world economy.

Russians who owned rubles were reluctant to do so, demanding interest rates of more than 50 percent.

The stimulation would come in part because lenders, being more optimistic about the economy's health, would demand lower interest rates.