The comeback of a rate-sensitive America

After enduring years of high interest rates, key sectors like manufacturing and construction are finally rebounding, driven by newfound job growth and an AI investment surge. This resurgence suggests that the Federal Reserve's earlier tightening campaign, which only slightly eased last year, is no longer as stifling as once feared. The implications are significant, as these sectors could lead to broader economic recovery and signal a shift in how the economy responds to monetary policy changes.