Goldman Sachs Strategist: 5% Interest Rate Won't Harm Market.

The U.S. economy and stock market may not be derailed by a 5% or higher interest rate, according to experts. Highly rated companies and homeowners have refinanced old debt during the pandemic, cutting their borrowing costs to near record lows. The Fed's policy rate could increase a bit from its current 4.75%-5% range, and stay there for a while. The Fed and other global central banks have been dramatically increasing interest rates in the aftermath of the pandemic to fight inflation caused by supply chain disruptions, worker shortages and government spending policies.