Fortune
Writing in Fortune, BCG’s Philipp Carlsson-Szlezak and Paul Swartz explain that rising long-term interest rates are not necessarily a sign of imminent recession and may instead be a sign of economic strength for the US economy. Despite signs that the financial system is vulnerable to shifts in the interest rate environment, monetary policy works via channels of financial stress and business failure. “Real and present microeconomic stress and pain should not obscure the fact that high long rates are a result—and a sign—of macroeconomic strength,” note the authors