Forecasts for Short-Term Interest Rates Continued This Week

Re revised seasonal factors have caused some to doubt the recent improvement in inflation. The risk for the economy overall is that monetary and fiscal tightening combined with the effects of a high dollar on slow demographics pushed the economy into recession. If this transpires, the Federal Reserve will have to reverse course and set the stage for a new multi-year period of low-long-term interest rates supporting both fixed income and equity markets.