Revisiting the Triple Whammy

Last quarter experienced historic increases in interest rates and prices as well as a negative wealth effect emanating from stocks. This has yet to be felt in an economy that is already shrinking. Could a recession be around the corner? That depends on many factors, not the least of which is Fed decision-making. Our long-held view remains unchanged. The Fed will not raise interest rates anywhere near as much as policymakers or the consensus of economists predicts.