JPMorgan, $JPM, has made the case that high rates are actually driving inflation

Jack Manley from JPMorgan Chase argues that the Fed's current rate range of 5.25% to 5.5% is actually contributing to inflation, and that prices won't stabilize until the central bank starts cutting rates.

"A lot of what's driving inflation today is closely linked to the level of interest rates," Manley said. "Whether you're looking at the headline number or the core number, much of it is influenced by the rate environment."

This perspective is quite radical and goes against conventional economic thinking. Kathy Bostjancic from Nationwide Mutual Insurance, when asked for her take on the issue, disagreed with this thesis.

However, Manley is not alone in this view. John Stoltzfus from Oppenheimer suggested last week that lower mortgage rates could encourage more people to sell their homes, increasing supply and potentially softening prices. If more people could afford to buy homes, they wouldn't need to rent as much, potentially stabilizing rents. Manley also pointed to housing and inflation from auto and other insurance premiums, which he noted are somewhat tied to interest rates.

"You won't see significant downward pressure on shelter costs until the Fed lowers interest rates, mortgages become more affordable, and supply increases because people are willing to enter that market," Manley said.

Manley's idea is provocative and highlights the lack of consensus on how to interpret the current economic cycle. Subadra Rajappa from Societe Generale is betting that yields for 10-year Treasuries will fall below 4% later this year, while Lara Rhame from FS Investments believes the benchmark could climb to 5%.

Jimmy Chang from the Rockefeller Global Family Office is increasingly diversifying away from bonds and into real assets, precious metals, and other commodities as a hedge for portfolios.

"We're navigating somewhat uncharted waters. Many of the traditional market indicators, such as the yield curve and leading economic indicators, have not been effective in this cycle due to the overwhelming monetary and fiscal stimulus," Chang said.