Eurodollar University Goldman Sachs Just Issued Brutal Economic Warning
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Aug 10, 2025 Steve Van Metre, a financial analyst and market commentator, joins the discussion to shed light on alarming economic trends. He unpacks Goldman Sachs's startling discovery of a zero-rate yield curve, reshaping traditional views on interest rates. The conversation delves into labor market signals, consumer demand shifts, and the ramifications of inflation versus stagnant earnings. Van Metre also highlights how rising prices are reshaping strategies in industries like fast food, revealing deeper implications for economic stability and consumer well-being.
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Yield Curve Implies Big Rate Cuts
- Goldman found the yield-curve midsection so rich it implies big cuts, possibly to zero.
- Jeff Snider says the curve shows high demand in the middle and a zero-rate expectation.
Fed Officials Turning Dovish
- Multiple Fed officials, including Lisa Cook and Mary Daly, signaled growing dovishness and labor concerns.
- Jeff Snider says these views align with the yield curve's cut expectations.
Jamie Dimon's Long-Bond Bet
- Steve Van Metre notes Jamie Dimon is loading up on the long bond amid the curve's signal.
- The example highlights banks acting on expectations of falling rates.