Rising Interest Rates and Economic Threats Pose Risk of Slowing Growth and Recession Fears
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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.
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Additional economic threats include high gas prices, the autoworkers' strike, student loan repayments resuming, and the risk of a government shutdown.
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Strong summer growth is expected to slow significantly in the fourth quarter due to cautious consumer spending.
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The Fed's interest rate hikes and need to finance government deficits have contributed to surging long-term Treasury yields.
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Economists say growth could shrink in Q4 and recession fears may replace optimism for a soft landing.
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