The Prospector News’ Michael Fox is joined by the National Investor Chris Temple to discuss the Federal Reserve Interest Policy Meeting.

We had 3 main takeaways.

1. The rates would be higher for Longer.

2. No rate cuts (or Hikes) in the immediate future.

3. Quantitative Tightening is being reduced from $80B monthly to only $25B.

We discuss the effects of these statements by the Fed on the economy and Fed Policy going forward.

In typical Market reaction the markets hear what they want to hear… Even though Powell was clear on the No Interest Rate drops, 24 hours later with poorer than anticipated jobs numbers the market began to price in rate drops. We discuss how the data is now starting to show the signs of Stagflation (Higher Inflation and Higher unemployment) that Chris has been alluding to for the past 2 years. Given the rapid fall in the Japanese Yen and the potential for China to devalue the Yuen. We discuss the potential to see rate curve controls on the US bond markets as a means to contain interest rate cost on US Treasuries.

National Investor