Yields are rising not from inflation, since that is already in the market. Yields are rising because of the govt’s issuance of more paper with less Federal Reserve intervention. Keep it simple!
The Dollar is going down with yields rising. Why? Anticipating an eventual slowdown in the economy due to falling financial markets and rising rates.
At the end of the day, a decline in financial markets or the economy may bring the Fed back around to increase QE.
At the end of the day, a decline in financial markets or the economy may bring the Fed back around to increase QE.
What the global public is learning about inflation post covid is that hard assets can rise in value regardless of the economy. Example used cars, industrial metals, precious metals, consumer goods, etc
This could be laying the foundation of a toxic combination when global governments use fiscal or monetary policies the next go around. They may not be able to control where their currency flows to or even worst maintain the public’s overall confidence and trust.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
