The procyclical forces behind the Fed’s rate hike train

This is today's links post. And I want to highlight a theme that runs through several links today. That's pro-cyclicality. One reason I am not bearish on the US economy yet is because I think a lot of pro-cyclical activity accompanies the initial surge in interest rates. In this particular cycle, we are now seeing both fiscal and regulatory policy acting pro-cyclically as well with Trump as President.

Later in the cycle, as rates march higher, earnings will materially erode, financial distress ...


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