Interest rate rise continues
Mon 7:45 pm +00:00, 31 Aug 2026Inflation is well above Fed’s 2.0% target.
Trump wants interest rates lowered, but the Fed says inflation rate is 3.7%.
Government debt needs to be renewed as well as increased.
This leads to higher longterm yields – 5.2% on 30 year government bonds/Treasuries.
Buybacks are commencing in September – to manipulate market conditions but don’t solve underlying economic conditions.
Tarriffs raise prices. Inflation already a problem. If Treasury rates keep rising so will all other interest rates – like mortgages.
The AI boom is holding the economy in growth.
The US $40 trillion debt problem is not going away. How long will the bond market allow the US government to keep financing itself at current rates?
TAP – The same story applies to the EU, the UK, ANZ Canada and Japan.
