And guess what long-term government rates (that mortgages are actually tied to) did today: they're up! (once again) Maybe it's an echo of last September when the Fed first started cutting short-term rates.
It's quite interesting too that Miran talked up the Fed's 3rd mandate in his confirmation hearing before the Senate last week. (What?! I thought there were only 2 mandates!) Well, Section 2A of the Federal Reserve Act lays out 3 mandates for the Fed, and that third one is "moderate long-term interest rates."
The bond market is arguably Trump's biggest problem this term, and we have a taste of where his unorthodox approach to policymaking might land next. If Cook goes, expect a full frontal attack on the Fed's "dual mandate."
As you said, the bond market is Trump's biggest problem this time around and something he can't just will his way into behaving how he wants it to. Like what happened after "Liberation Day" when Trump backed off a bit, tail between his legs.
And guess what long-term government rates (that mortgages are actually tied to) did today: they're up! (once again) Maybe it's an echo of last September when the Fed first started cutting short-term rates.
It's quite interesting too that Miran talked up the Fed's 3rd mandate in his confirmation hearing before the Senate last week. (What?! I thought there were only 2 mandates!) Well, Section 2A of the Federal Reserve Act lays out 3 mandates for the Fed, and that third one is "moderate long-term interest rates."
The bond market is arguably Trump's biggest problem this term, and we have a taste of where his unorthodox approach to policymaking might land next. If Cook goes, expect a full frontal attack on the Fed's "dual mandate."
You heard it here first.
Jared I'm giving you the call when this actually happens. Good to see you here!
Great point! Heard about this "3rd mandate" business for the first time a couple days back on Rick's old stomping grounds: https://finance.yahoo.com/news/fed-third-mandate-forces-bond-100000897.html
As you said, the bond market is Trump's biggest problem this time around and something he can't just will his way into behaving how he wants it to. Like what happened after "Liberation Day" when Trump backed off a bit, tail between his legs.