Bloomberg Surveillance · Wednesday, July 15, 2026
The current US economic growth is primarily fueled by sectors like technology, materials, and industrials, making it largely independent of interest rate fluctuations. While large segments of the economy and smaller businesses are sensitive to rates, companies driving significant earnings growth are not reliant on federal funds rates, indicating a divergence in economic performance.
“Look, I think when you look at the bulk of this earnings growth, it's not coming from rate sensitive companies, right, It's not coming from smaller cap company.”
“The companies that are spending on chips have more money than the Lord himself. They don't need to borrow at the federal funds rate, and so I think that that earnings growth is in a lot of ways at this point, really independent of rates.”
“What you see though, is that there's large swats of the economy middle income Americans, lower income Americans, smaller businesses that do care about rates, and they've been under pressure for three or four years.”