holger: that is one of the big questions.my view there are too many in markets who believe the economy will not sustain above trend growth for long. the fed, after starting to hike rates will then have to stop early or even cut rates to get a few years from now. i think u.s. demand will state above its trend rate and hence the fed will hike and height began in rates will stay somewhat elevated -- will hike and hike again and rates will stay somewhat elevated and in that box drop it would make sense for u.s. yields to move up. matt: blood keeps growth above trend? -- what keeps growth above trend ? holger: almost everything. consumers have extra savings stashed away. this extra savings gives them a cushion against the impact of interest rate rises. we have the government that wants to spend more it is on track to spend more and we already have quite a few fiscal initiatives under the belt. companies need to invest more in order to replace staff which they can no longer find. on top of that we have a global economy that is like

joining me now is holger schmieding, who's the chief economist at berenberg. good morning.many. 0ur the general public going with the government's decision—making or are they antsy about the soul? good morning. the public in germany is going with the government decision. many in the public would have liked to have had some tighter restrictions already before that. there is a bit of dismay that. there is a bit of dismay that in the transition of power from the old to the new government, there was a period where germany did not do enough and flip—flop a bit on restrictions. despite the occasional practice, there is significant support or stopping this pandemic as soon as possible, especially the spread of the 0micron variant. for possible, especially the spread of the omicron variant.- of the omicron variant. for the relatively _ of the omicron variant. for the relatively new _ of the omicron variant. for the relatively new chancellor, - of the omicron variant. for the relatively new chancellor, olaf| relatively new chancellor, 0laf scholz, this is his first real challenge in