From Steve Sjuggerud’s “Daily Wealth” newsletter I read a succinct description of why interest rates have moved dramatically up, by a full point in just over 6 weeks.
“When you’re talking about money, the interest rate on the U.S. 10-year Treasury is the most important number on the planet. Just about everything relating to the financial markets is either based on this number or strongly affected by it.
In the last six weeks or so, the interest rate on the U.S. Treasury bond has soared from 1.7% to 2.6%. That’s a huge jump in such a short time. And it’s having ripple effects…”
The Fed has been monkeying around with interest rates by printing money and buying their own debt for far to long. This will not end well for the American economy. It is an example of hubris that we will all suffer for, and is a good reason that the Fed should be abolished.