That gap between rising public leverage and falling private leverage is the crux of Morgan Stanley's call. The firm believes consumers and businesses are well insulated enough to navigate higher yields without facing meaningful constraints on borrowing, spending or investment.
Michael Gapen, Morgan Stanley chief U.S. economist, joins 'Closing Bell Overtime' to talk his takeaway's from Fed Chairman Warsh's Jackson Hole speech and the potential impact of a hawkish tilt by the Federal Reserve.