Why the Fed's rate cut might not boost the economy | Metals Mine

  • Why the Fed's rate cut might not boost the economy

    From morningstar.com

    The yield curve will reveal the bond market's confidence in how the U.S. is handling monetary policy Financial markets are weighing the risk that U.S. interest rates now will be based on political considerations. Just as the inverted Treasury yield curve in recent years didn't mean a recession was imminent, the current upwardly sloping yield curve doesn't guarantee a strong economy. The yield curve refers to the difference between interest rates at shorter and longer maturities. Shorter-term rates typically are lower than longer-term ones. But at times this balance will be reversed, or inverted - and historically an ... (full story)

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The Doji
Sep 17, 2025 8:52am
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Quoting farrukhlodhi
The U.S. Treasury yield curve has shifted to an upward slope, often seen as a signal of economic strength. However, markets remain cautious because this shape does not guarantee solid growth, just as the earlier inverted curve did not lead to an immediate recession. Investors are increasingly focused on whether the Federal Reserve’s interest rate decisions are guided by economic fundamentals or influenced by political pressure. The bond market’s reaction shows mixed confidence: while long-term yields suggest optimism, underlying concerns about policy...
Agreed, and then there is of course the no small decision by the Supreme Court in November to decide if they concur with the Federal Appeals Court and denounce the tariff's. Should this be the case then things will get very interesting.
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farrukhlodhi
Sep 17, 2025 7:01am
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The U.S. Treasury yield curve has shifted to an upward slope, often seen as a signal of economic strength. However, markets remain cautious because this shape does not guarantee solid growth, just as the earlier inverted curve did not lead to an immediate recession. Investors are increasingly focused on whether the Federal Reserve’s interest rate decisions are guided by economic fundamentals or influenced by political pressure. The bond market’s reaction shows mixed confidence: while long-term yields suggest optimism, underlying concerns about policy credibility and economic stability remain.
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Trader#15CE
Sep 17, 2025 6:56am
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Which is correct
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Trader#E154
Sep 17, 2025 8:05am
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There's no solution until you do solution. Just like plan and plant ahead before the season come.
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Trader#9A54
Sep 17, 2025 11:24am
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Due to AI, there will be job losses no matter the Fed rate. Fed should not cut rate because inflation is still high.
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