“I estimate that a rise in rates…will produce about a 20 percent negative impact on equity prices”.
There’s potential for stagflation, and an even worse scenario to play out. FED may be forced to ’pivot’ too soon - I.e. start reducing interest rates even before inflation is under control
There’s potential for stagflation, and an even worse scenario to play out. FED may be forced to ’pivot’ too soon - I.e. start reducing interest rates even before inflation is under control