Rebel Capitalist News
Interest Rates Are Skyrocketing...How High Will They Go?
Oct 28, 2024
This discussion uncovers the surge in interest rates following recent Federal Reserve cuts, focusing on the 10-year treasury yield's climb. It dives into the tangled relationship between inflation, growth expectations, and government deficits. The podcast also reveals how shifts in government spending influence inflation trends, comparing past debt levels to current spending increases. Finally, it examines the connections between monetary supply, government action, and global supply chains, all while predicting future interest rate outcomes.
43:33
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Quick takeaways
- The Federal Reserve's recent rate cuts may have been premature, potentially triggering a resurgence of inflation reminiscent of the 1970s.
- Historical data indicates a tendency for interest rates to rise following Fed rate cuts, suggesting market expectations may drive yields higher despite monetary policy changes.
Deep dives
Rising Interest Rates and Economic Impact
Interest rates are on the rise, notably following the Federal Reserve's recent decision to cut rates. The 10-year treasury yield has increased significantly, suggesting that the Fed may have acted prematurely by cutting rates in a booming economy. This situation raises concerns about a potential reacceleration of inflation, with predictions that consumer prices could skyrocket to levels reminiscent of the 1970s. Acknowledging this trend prompts a reassessment of the Fed's strategies and whether future rate hikes may be necessary to combat inflation.
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