The dollar’s role as dominant global reserve currency is at risk if the Fed fails to crack down on inflation (transcript from my podcast).
Junk bonds are still in la-la-land though, Apocalypse but not now.
10-Year yield hits 2.31%, 30-year fixed mortgage rate hits 4.66%. And why the funny kangaroo-shaped yield curve says nothing about the economy.
The strong economy and labor market can “handle tighter monetary policy.”
The Fed’s credibility shifted from Inflation Fighter under Volcker to Wealth Disparity Creator and Inflation Arsonist under Powell. And everyone knows it.
“It could be a bumpy time”: Kansas City Fed President.
Yields and rate-hike expectations spike. A rate hike now?
Inflation is burning out of control, but the Fed is still pouring fuel on it. You can no longer just blame supply chains. This is far bigger.
Fed’s coming tightening cycle sinks in, amid still brutally negative “real” yields, as bonds’ purchasing power gets eaten up by inflation.
Brazil and Russia caught up via shock-and-awe rate hikes. But most central banks fell further behind. Then there are the reckless laggards.