Interest Rates Are Rising. Can the Economy Handle It? | Edward Dowd

Inflation has picked up again this year, with higher energy prices tied to the war with Iran pushing headline readings higher. On September 16, the Federal Reserve raised rates for the first time since 2023. What happens when a policy aimed at prices meets an economy that may be less able to absorb higher borrowing costs?

Not all inflation reaches the economy in the same way. When the pressure begins with energy rather than stronger demand, the policy response can carry risks that a single inflation reading does not show.

Edward Dowd, founding partner at Phinance Technologies and a former BlackRock portfolio manager, explains what he sees beneath the inflation data and why he believes the risks extend beyond prices. Recorded ahead of the Fed's decision, the conversation looks at where tighter policy could add pressure in the months ahead.
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00:00 Intro
01:23 Why Raising Rates Is a Mistake
02:23 The Looming Housing Rollover
07:02 The Consumer Spending Cliff
08:53 China’s Demographic Crisis
12:00 Closing Time for AI
15:23 How Bonds Ended the AI Party
20:17 The Private Credit Warning
22:08 The Dangerous Dot-Com Parallel
32:25 The “Inflate or Die” Cycle
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