Bloomberg Surveillance Bloomberg Surveillance TV: January 7, 2025
5 snips
Jan 7, 2025 Experts discuss rising treasury yields potentially signaling a financial turning point. The former Federal Reserve president shares insights on interest rates and the US economic outlook. A Republican Representative outlines his priorities as the new Chairman of the House Financial Services Committee under a second Trump administration. Additionally, the conversation examines the implications of recent Fed rate cuts on overall economic trends, while touching on modern payment solutions and skincare innovations.
AI Snips
Chapters
Transcript
Episode notes
Unusual Treasury Yield Behavior
- Rising treasury yields, despite Fed rate cuts, are unusual.
- This suggests factors like fiscal policy or reduced foreign demand are at play.
Yield Curve Steepening: Good and Bad
- A newly positive, steepening yield curve is generally positive.
- However, higher rates for longer periods can strain weaker, leveraged companies.
Risk of a "Liz Truss Moment"
- Combining fiscal proposals into one large bill increases the risk of market instability, similar to the UK's Liz Truss moment.
- This is due to concerns about increased treasury issuance and existing fiscal deficits.