Chris Zaccarelli, CIO at Northlight Asset Management, says today's elevated inf and strong GDP print raise upside risk to interest rates—negative for bonds but still tolerable for equities. He warns that if both inf and growth run higher, policy rates will need to be higher. Current inf is not severe and has not halted activity; real growth remains above trend after adjusting for inf. Rising rates alone may not end the bull market, but a growth slowdown or recession could interrupt the rally. Za

Chris Zaccarelli, CIO at Northlight Asset Management, says today's elevated inf and strong GDP print raise upside risk to interest rates—negative for bonds but still tolerable for equities. He warns that if both inf and growth run higher, policy rates will need to be higher. Current inf is not severe and has not halted activity; real growth remains above trend after adjusting for inf. Rising rates alone may not end the bull market, but a growth slowdown or recession could interrupt the rally. Zaccarelli notes capital-spending concerns exist but do not signal a move to a bear market.