Episode Details
Back to Episodes
The Fed Holds at 364 as Bond Market Tests Kevin Warsh
Description
Episode 3 of The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy. As Kevin Warsh prepares to be sworn in as Fed chair on Friday, the bond market is already sending a clear signal. Lucas and Luna break down the economic data—CPI at 332.4, core PCE at 129.3, and the ten-year breakeven inflation rate sliding to 2.44 percent—and explain why the Fed's effective rate of 3.64 percent might not be enough to satisfy the so-called 'bond vigilantes.' They explore the history of the term, from the 1990s to today, and examine how a new chair inherits a market that is skeptical, not panicked. If the Fed has to raise in July, as some strategists predict, what does that mean for the curve, for mortgages, and for the political pressure on an incoming chair? One concrete angle, drilled deep.