- If the Fed wants to hold yields down, they will have to actually do something. They made numerous statements, but any actual action was missing from the pronouncements.
- Now yields have surged overnight, with the 10-year Treasury at 1.73%, which is back 24 basis points from yesterday's close. We are verging on last year's high yield, which was 1.88% on January 2.
- The Fed's bet on a rapidly growing economy is just that, a bet. Higher interest rates will not help this wager. Inflation may be one cause of higher rates, but it's just the easiest to blame.
For further details see:
Not Tough Enough