This chapter discusses the recent surprise growth in the US economy and the rise in yields on 10-year US Treasury bonds, challenging the previous belief of interest rates on a long-term downward trend. It explores the implications of higher bond yields on borrowers and highlights the potential consequences of high interest rates on small businesses, homeowners, and the banking system.
Economists have stopped waiting for interest rates to drop because it doesn’t seem to be coming. The upward pressure on long-term bond yields suggests that this situation could last for a while. How should the world adjust? Israel’s economy might be in good enough shape to withstand the next few months, but a longer war won’t come cheap (12:00). And, Jilly Cooper’s sexy new book (18:55).
Sign up for a free trial of Economist Podcasts+
If you’re already a subscriber to The Economist, you’ll have full access to all our shows as part of your subscription.
For more information about how to access Economist Podcasts+, please visit our FAQs page or watch our video explaining how to link your account.