Rising Rates Ripple Through Economy, Challenging Old Assumptions

Rising interest rates are affecting all areas of the economy, from housing to corporate profits. The full impact has yet to be felt due to lags in transmission.

While interest rate fatigue has set in, this era has rates at its core, tying asset classes together. We can't afford to ignore them.

Higher rates make the future less valuable, with profound consequences beyond just mortgage payments. Investments are much harder to justify.

Economists once predicted a 2022 recession with certainty. But resilience of jobs and spending has challenged views on rate potency.

Relief from further hikes may have to wait. Inflation expectations are still too high. Rates may seem high historically but are just reversing a 40-year downtrend.