Impact of Economic Indicators on Capital Market Expectations

John is an investment portfolio manager who is currently evaluating the macroeconomic landscape to forecast his firm's capital market expectations. He has developed the following economic outlook based on key indicators: a stable GDP growth rate of around 3%, rising inflation expected at 2.5%, and interest rates projected to be stable around 1.5%. John believes these indicators will influence his assumptions regarding returns on different asset classes over the next few years.

He is particularly focused on understanding how these changes in macroeconomic conditions could affect equity and fixed income investments. Given this scenario, which of the following capital market expectations is most likely consistent with John’s economic outlook?