Part 4/8:
The rise in interest rates, now at their highest levels in seven years, is identified as a potential downside for the markets. The team observes that market trends dipped in response to these higher rates, indicating a more challenging environment for investors looking for growth. As Hill puts it, there seems to be a scenario of "robbing Peter to pay Paul" with the tax cuts and how they interact with these rising interest levels.
Matt Argersinger pointedly emphasizes the need to monitor hourly wage increases—sitting at a 2.8% uptick—since wages are critical in applying pressure on inflation. A sustained rise in wages could eventually lead to significant inflationary outcomes, complicating the current economic dynamic.