Trump was upset with Powell and, while holding his tongue viz Warsh, has been singing a constant one-note for the Fed to lower rates. In recent weeks, the long-rates have soared to Trump's chagrin, causing further calls for Fed rate cuts. Whether the10Y's bounce off a new ceiling might or might not be a signal that long rates could be going lower no one knows. But, if they are, one explanation is that Fed raised rates at its last meeting and signaled further rate hikes to come. And if that's what happens, namely, the Fed raises rates (at the short end which all it can do) and long-rates go down, it could be because the bond market believes that the Fed is taking inflation seriously and is tackling it. The irony then would be that Trump would get his lowering of the 10Y rate because the Fed raised rates, and would not have gotten it if the Fed had, as Trump asked, to cut rates.
[EOP]
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