The bond market is telling us that the Fed is in very serious trouble.
Bonds are quite complicated, so I’m going to do my best to keep things very simple here.
The Fed ended its Quantitative Easing (QE) program through which it prints new money and used it to buy assets from Wall Street in early March. Since that time, the Fed has also begun raising interest rates, implementing its first rate hike of 0.25% on March 17th.
Historically, when the Fed begins raising interest rates, it looks to the 2-Year U.S. Treasury for guidance: the Fed tracks the yield on this bond as a proxy for where rates need to go.
With that in mind, the yield on the 2-year Treasury, is exploding higher. In six months, it has moved approximately the same amount that it did from 2012-2018!!! This is a truly incredible move, and it tells us the Fed is WAYYYY behind the curve in terms of where interest rates need to go.
If you think that’s disturbing, consider the following…
This yield on the 2-year U.S. Treasury is HIGHER now than it was before the Fed raised rates a few weeks ago. This means the Fed is MORE behind the curve now than it was before it actually raised rates!
ALL on Democrat Party !!!!! Can’t Blame TRUMP anymore !!!!!
Stock Market will Tank like 1929 !!! Just wait & see
Pull your $$$$ OUT of the Banks NOW !!!!!
Better buy GOLD & SILVER !!!! Like the commercials say !!!
Maybe we on the shore will see those huge bulk chicken breast sales like in 2020 again. Anything chix is always good.
I don’t think it is going to take that long, just keep on sanctioning and see how long it takes. for total destruction. Welcome to Biden’s America.
Just how long are we going to allow this thieving bastard to continue to destroy what is left of our once great country, till he got his paws on it?