James Grant, founder and editor of the broadly read Grant’s Interest Rate Observer, was the guest on Consuela Mack’s Wealthtrack show this week. In the interview, embedded below, Grant explains why he believes the Federal Reserve’s zero interest rate policy and massive purchases of U.S. Treasury and mortgage-backed bonds are dangerous to the economy.
Grant doesn’t see how “price control… improves conditions for working Americans. It seems to me that everything argues against that.”
Election-year politics and Iran deal are a boost for defense stocks.
The overarching outlook for fixed income in 2024 is centered on rate cuts, but we still haven’t solved the timing and magnitude questions, which will continue to create an elevated volatility quotient for Treasuries until some clarity comes into the picture.
The US Treasury market experienced some unusual trading activity, with the UST 2-Year yield surging by 70 bps in February and then tacking on another post-Powell increase of 25 bps, reaching a peak of 5.07%, the first time eclipsing the ‘5%’ threshold since 2007.
U.S. small-cap equity performance has been surprisingly robust
