20 Dec 2021 Can the Private Sector Cope with More than a Modest Fed Tightening?

Ian Shepherdson (Chief Economist and Founder)20th Dec 2021 00:30U.S., Daily Monitor

Faster productivity growth means higher real neutral rates, but can the private sector cope?
Households and firms are in good shape, with low debt service ratios and transformed balance sheets.
Markets don't believe the Fed's dotplot, but it's more likely that the markets will have to move up.

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