Rebel Capitalist News Interest Rates Are Plummeting...Here's Why That's Bad
Sep 9, 2025
Explore the recent drop in interest rates and its surprising effects on the economy and stock market. Discover why lower rates may not be as beneficial as they seem, and unravel common misconceptions about treasury demand. The discussion also highlights crucial labor market trends and upcoming economic data, urging listeners to think critically about the current financial landscape.
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Rates Have Fallen, Not Risen
- The 10-year Treasury yield has fallen nearly 95 basis points year-to-date, not risen as many claim.
- Market chatter about surging yields ignores actual demand dynamics and recent declines.
Curve Drop Reflects Expectations
- Yields across the curve, including the two-year and 30-year, have dropped significantly this year.
- Lower yields reflect demand and falling growth/inflation expectations, not Fed control of the curve.
Lower Rates Signal Economic Weakness
- Lower interest rates are a symptom of weakening economic conditions, not a cure.
- Falling rates often accompany recessions or much worse economic outcomes.