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Interest-Rate Forecast: What’s Next?

Investing Insights

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The Fed's Plan of Cooling Off the Economy and Taming Inflation

The economy has weathered rate hikes so far, better than most would have expected. It's still the case in our view that much of the effects of rate hikes have yet to fully play out. Banks are still recalibrating their loan growth to respond to higher interest rates. That contraction in bank loans will weigh on business investment and consumer spending a lesser extent.

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