U.S. Economic Resilience Points to Possibility of Higher Neutral Policy Rate -- Market Talk
Dow Jones2026/10/15 05:140514 GMT - The resilience of the U.S. economy raises the possibility that the neutral policy rate is higher than previously assumed, New York Life Investment Management's Julia Hermann says in a note. However, further increases in Treasury yields could begin to challenge the very growth resilience that has allowed markets to absorb tighter financial conditions, the global market strategist says. The market's sweet spot depends on higher rates remaining a reflection of economic strength, she says. New York Life Investment Management prefers short-maturity, short-duration credit for its attractive income generation potential. "With yields remaining volatile at the long end, we see limited compensation for extending duration," she says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
October 15, 2026 01:14 ET (05:14 GMT)
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