Rebel Capitalist News The Fed Shocks The World With Historic Rate Decision
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Jul 30, 2025 The podcast dives into the Federal Reserve's shocking decision on interest rates, revealing unexpected internal dissent. It also discusses a surprising 3% GDP growth driven by decreased imports, defying predictions. However, concerns rise over declining investments and government spending. The episode emphasizes the need to look beyond the headlines to grasp the true economic picture, highlighting conflicting signals in today’s market.
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Fed's Unprecedented Internal Dissent
- The Federal Reserve showed unprecedented internal dissent in their rate decision, something not seen since 1993.
- This conflict may indicate a future dovish stance at the Fed influenced by political jockeying for leadership.
Growth Drives Yield Changes
- Interest rates rose despite a Fed pause, driven by the surprise strong GDP growth.
- Growth and inflation expectations, not supply concerns, are primary drivers of long-term treasury yields.
GDP Beat Masks Economic Weakness
- The 3% GDP growth was mostly due to a collapse in imports, which artificially boosted the headline number.
- True economic strengths like consumer spending and investment were weak or negative beneath the surface.