3 factors this strategist believes will impact interest rates

Treasury yields (^TYX, ^TNX, ^FVX) are surging on Tuesday as the Treasury Department announced higher yields will be expected for the next two quarters. BlackRock Head of iShares Investment Strategy Americas Gargi Chaudhuri joins Catalysts to discuss the implications of higher yields on the broader equity market (^DJI, ^IXIC, ^GSPC).

Chaudhuri notes that although yields have risen, the market has remained "extremely resilient." However, moving forward, she emphasizes that attention will shift to earnings, as the better-than-expected earnings reported so far "have given a boost" to "some pockets" of the market.

Chaudhuri highlights that there are "a number of data points" that need to be considered when assessing the future trajectory of monetary policy. She identifies three main factors that could contribute to a prolonged higher-for-longer interest rate environment: supply dynamics, the path of inflation, and labor market growth trends.

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This post was written by Angel Smith