Rebel Capitalist News Interest Rates Are Plummeting!! WTF Is Happening?
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Aug 13, 2025 Interest rates are seeing a dramatic decline, raising eyebrows about the implications for both the economy and political landscape. The discussion dives deep into the dynamics of inflation, consumer prices, and stagnant wages, painting a picture of purchasing power erosion. Additionally, there's an intriguing segment on how increasing interest rates affect the bond market, introducing innovative gold investment strategies that allow investors to earn yields on their gold. Tune in for a fascinating exploration of these current financial trends!
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Bull Steepener Signals Weaker Growth
- The bull steepener (two-year down more than ten-year) signals falling growth and inflation expectations.
- Falling long-term yields imply markets see weaker economic prospects, not just issuance issues.
Market Prices Imminent Fed Cuts
- The market now prices near-certain Fed cuts within weeks based on yield moves.
- CME FedWatch probabilities shifted dramatically toward a 25bps cut and away from a pause.
Dollar Moves Reflect Rate Differentials
- Interest rate differentials are driving the dollar lower in the short term.
- The DXY decline reflects markets pricing a more dovish Fed versus foreign peers.