US Economy Shows Resilience Amid Higher Interest Rates

Wells Fargo economist Sarah House believes the US economy can continue growing despite higher interest rates. In an interview on Bloomberg's Surveillance Radio, House said that Federal Reserve Chair Kevin Warsh may use the upcoming Jackson Hole conference to focus on long-term questions facing the Fed rather than signal a rate hike.

House also discussed alternative economic data, which she believes is more indicative of the economy's resilience than traditional metrics. She pointed out that the Fed balance sheet has been shrinking, and Treasury yields have risen, but these changes are not necessarily bearish signs for the economy.

House noted that the US economy continues to show resilience despite higher rates, with employment numbers remaining strong and consumer spending holding up well.