Jim Bianco of Bianco Research notes that the Federal Reserve recently implemented its first interest rate hike in over three years. He highlights that the bond market had been signaling the necessity of this move for two years prior to the action.
During the previous rate-cutting cycle, the ten-year yield increased from 3.7% to 5%. Bianco notes this event marks the first time in more than 50 years that long-term yields rose while the Federal Reserve was actively cutting rates.
Bianco also discusses the significance of the October 28 decision, which occurred one week before the midterm elections. He suggests that the impact of this specific policy timing is more substantial than current market expectations on Wall Street.
The analysis covers the role of Tether as a functional currency in Venezuela and Afghanistan. Additionally, Bianco addresses the development of Bitcoin ETFs and the broader dynamics of the post-COVID economy in relation to Federal Reserve policies.
