Higher Interest Rates to Slow Growth and Jobs, But Not Cause Recession Yet

Higher interest rates expected to shave 0.5% from U.S. GDP growth and lead to job losses at unprofitable firms, per Goldman Sachs.

Short-term bond yields hovering near 17-year highs as resilient labor market suggests economic strength.

Fed's current benchmark rate not high enough to cause recession yet, so less likely to cut rates soon.

Prolonged high rates could create 20,000 monthly job loss drag and 0.2% GDP hit from cost-cutting.

U.S. debt-to-GDP ratio could rise from 96% to 123% over next decade due to higher rates.