Rebel Capitalist News Interest Rates Are Skyrocketing! Meta Now Anti Woke, The Real Dollar Crash
16 snips
Jan 8, 2025 AI Snips
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Market Forces Drive Rates
- The 10-year Treasury yield's surge to almost 4.7% isn't solely due to the Fed's actions, as some believe.
- Market forces, particularly growth and inflation expectations, play a more significant role, often overriding the Fed's influence.
QE1's Counterintuitive Outcome
- During QE1, the 10-year Treasury yield rose 200 basis points despite the Fed's efforts to lower it.
- This demonstrates how market sentiment can outweigh the Fed's quantitative easing, often leading to the opposite of the intended effect.
Housing Affordability Crisis
- Housing prices, at all-time highs, are primarily driven by interest rates and incomes.
- The crucial price-to-income ratio shows homes are less affordable than in 2006, increasing the likelihood of decreasing demand.