Share on linkedin pushed its target interest rate above 5% — a step that seemed sure to cause ripples across the corporate landscape and the global economy. To a surprising degree, though, the world has taken the onset of 5% rates in stride.has adjusted to the new era of high borrowing costs — with more business leaders accepting that it could be the new normal.
"Look how well-attended this conference is, and there's half a hotel here," real estate billionaire Barry Sternlicht told the crowd Tuesday, a sign of strong demand. The stock market has bounced to new highs, and the housing market is humming along, with the biggest problem being a lack of supply."Last year, there was this sense that the economy really couldn't withstand an interest rate shock," Jason Thomas, global head of research at Carlyle, told Axios on the sidelines of the conference.
Minneapolis Fed president Neel Kashkari pointed to the booming stock market as another sign: "There's a pretty strong disposition to exuberance in financial markets, so that does give me concern," he said.