AFMC - Long-Term Interest Rates Are Going Up
2024-04-07 15:49:41 ET
Summary
- The Federal Reserve is expected to lower interest rates, but the economy and stock market don't need stimulation.
- Treasury Bills currently yield 2.5% more than historical average, while long-term bonds earn 0.5% less.
- Inflationary pressures from COVID spending could lead to an increase in long-term government bond yields and a debt spiral.
Everyone expects the Federal Reserve to “pivot” – to lower interest rates – primarily because inflation appears to be under control. But the economy and stock market are on an upward trajectory, so they don’t need stimulation....
Long-Term Interest Rates Are Going Up