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Macro & Markets: Everything is about interest rates
Strong economic growth and inflation above the Federal Reserve’s 2% inflation goal is likely to put upward pressure on bond yields and downward pressure on the economy at a time when the rest of the financial market reflects a strong economy. Interest rates are in control. Today a strong US economy has become the consensus expectation. The Bloomberg US 2024 consensus forecast is that the US economy will grow by 2.4% and that consumer prices will rise by 3.1% while the unemployment rate will stay at 3.9%. That is the description of a strong economy and an economy where inflation is above the Federal Reserve’s 2% ... (full story)