Rising Interest Rates and Economic Threats Pose Risk of Slowing Growth and Recession Fears

Rising long-term interest rates pose a threat to a soft economic landing as other borrowing costs rise in response. This could weaken consumer spending.

Additional economic threats include high gas prices, the autoworkers' strike, student loan repayments resuming, and the risk of a government shutdown.

Strong summer growth is expected to slow significantly in the fourth quarter due to cautious consumer spending.

The Fed's interest rate hikes and need to finance government deficits have contributed to surging long-term Treasury yields.

Economists say growth could shrink in Q4 and recession fears may replace optimism for a soft landing.