The 10-year Treasury yield topped 5% this week for the first time in nearly three years, and it has climbed more than a point since February as the war pushed oil higher. The Fed is expected to raise rates on Wednesday, with the market pricing a hike at roughly 90%. Our panel makes the case that tightening into an oil supply shock cannot fix it: rates do not produce barrels, and the consumer is already carrying a 30-year mortgage near 6.8% and credit card rates around 19%.
Featuring:
Jake Conley, Breaking Business News Reporter, Yahoo Finance
Jessica Inskip, Director of Investor Research, StockBrokers.com
Brooke DiPalma, Yahoo Finance
Timestamps
0:00 The single most important number in financial markets
0:16 Can the Fed tighten the front end and hold the long end?
0:45 Why a one-off hike would be unusual
1:20 Can the US grow its way out of a yield problem?
1:55 What 5% does to a mortgage and a credit card
2:58 Credit cards near 19%, and the squeeze on spending
3:24 Rates do not produce barrels
3:32 Why this raises recession risk
3:57 Credibility, and 65 months above target
4:40 Why Fed independence became the story under Warsh
5:25 The White House weighs in the morning before
6:27 Competition for capital, and the AI build-out
#FederalReserve #TreasuryYields #Inflation #Oil #RateHike #YahooFinance
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