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- Constant volatility will be a hallmark of the new market regime, BlackRock strategists said.
- High interest rates will amplify the US's debt problem, which has already stoked volatility in markets.
- Interest payments on US debt could soon surpass Medicare payments, strategists wrote.
The new market regime will be marked by constant volatility, BlackRock strategists wrote in a note, as higher-for-longer interest rates will exacerbate the issues with America's massive debt pile.
"We see volatility as a constant in the new regime," the world's largest asset manager said in a note on Monday, pointing to the rise in interest rates over the past year. Central bankers have hiked interest rates aggressively to control inflation, with fed funds rate now at its highest level since 2001.