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To: Miami Rebel

The Fed can only control short term interest rates, long term rates are determined by the market. In other words, the Bond market is melting down.

Loss of confidence signals crisis.


2 posted on 04/21/2025 6:37:22 AM PDT by delta7
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To: delta7

From the article: Concerns over the impact of Trump’s tariff regime on global growth pushed investors toward safe-haven assets like gold on Monday. Spot gold prices — which also got a boost from a weaker dollar — hit a record high above $3,400 an ounce.
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The Bond markets are signaling crisis ahead, but more importantly, with Gold now taking 3,400 dollars to purchase an ounce, is signaling an historic meltdown ahead.

The much talked about “ Great Reset” has begun.


4 posted on 04/21/2025 6:43:10 AM PDT by delta7
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To: delta7

Before jumping, take a look at the 10-year “break-even inflation rate” (this is the difference between the 10-year Treasury and the 10-year inflation-adjusted Treasury).

https://fred.stlouisfed.org/series/T10YIE

This implicit forecast of inflation grew to 3 percent under Biden and has since settled down to 2 to 2.5 percent.

The Federal Reserve’s long-run target for inflation is 2 percent, and getting the inflation rate all the way down to 2 percent is proving to be tough.


8 posted on 04/21/2025 6:58:56 AM PDT by Redmen4ever
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To: delta7

“The Fed can only control short term interest rates,”

The feds cannot control short term interest rates. The can only “influence”.


20 posted on 04/21/2025 12:20:32 PM PDT by TexasGator (.'11/'~~'111./.)
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