John Batchelor 09-03 segment 9.mp3 Guest:
Brett Arends of
Market Watch (
Return on Investment). Bond Market Anxiety and Federal Reserve Pressures
Brett Arends explains the bond market's current unhappiness stems from unsustainable national debt and uncertainty surrounding
President Trump's tariffs. He clarifies that the
Fedcontrols short-term rates, while the bond market sets long-term rates.
Arends warns that
Trump's pressure on the
Fed to cut short-term rates could paradoxically cause long-term rates, including mortgage rates, to rise, hurting the economy and exacerbating market nervousness. He emphasizes the need for fiscal sustainability.
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