..market rates have been moving higher despite Fed pivoting on rate cuts.
..has the Fed been made impotent? If so, this is a significant adverse development in that the Fed is losing control.
..when rates go higher for longer in a K economy, the down and out and vulnerable sectors/segments of the economy would feel unrelenting pain.
..central bankers' management of a K economy based on traditional approaches could seem somewhat misguided. But how else when the tools they have are just monetary policy via either interest rate policy or turning on/of the liquidity tap (QE)? While it has no jurisdiction over the Govt's fiscal policy which has been 'weaponised' into a vote buying machine.
..free marketers believe that Govt intervention isn't helpful but at the same time they have no answer to corporate profiteering, with their media repudiating that it is actually happening.
..far sighted Govts would be wise to establish a Contingency Disaster Fund, a fund available to be tapped in the event of any nationwide disaster from bushfires, floods, to pandemics and even wars. But the answer to raising such fund is not to tax people via raising the Medicare levy or other taxes, instead this should be from the defence budget i.e make room for it in the defence budget by cutting/slashing other unnecessary expenditures.
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Interest rates are SKYROCKETING:
The 10-year note yield is nearing 4.70% with mortgage rates on their way to 8%+.
Since the "Fed pivot" began just 111 days ago, interest rates are up more than +110 basis points.
