The macroeconomic outlook for the second quarter is overwhelmingly optimistic as consumers are expected to shake off lingering pandemic-related uncertainty and go on a services spending spree, according to Lara Rhame, chief U.S. economist, managing director at FS Investments in her recent report.
While we’re close to coming full circle on this unprecedented economic cycle, inflation, rising interest rates and policy are all converging to challenge investors. For financial markets, rising interest rates will remain a focus — it isn’t just how high rates can go, but how fast. Even strong equity market fundamentals may be jolted by volatility in interest rates.
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