No suspense: the Fed added 25 basis points, and the probability of another hike in October has already risen to 50%.
Trump continues to cry on Truth: interest rates need to come down to below 1%. But what’s really draining people is the long end—10-year at 5.01%, 30-year at 5.35%, and 30-year mortgages are already 7%. They only drop to 6% right before the round begins in February.
Worsh says there are three reasons yields are rising: a strong economy, AI is hoovering up money, and geopolitics. The funny thing is, none of these can be cured by rate hikes—it's as if it all ends up being blamed on Trump.
Trump continues to cry on Truth: interest rates need to come down to below 1%. But what’s really draining people is the long end—10-year at 5.01%, 30-year at 5.35%, and 30-year mortgages are already 7%. They only drop to 6% right before the round begins in February.
Worsh says there are three reasons yields are rising: a strong economy, AI is hoovering up money, and geopolitics. The funny thing is, none of these can be cured by rate hikes—it's as if it all ends up being blamed on Trump.
