The two-year Treasury yield is the one to watch for Fed interest rate moves, and it’s been on the rise to a near-decade high — close to the level it reached around the time Lehman Brothers failed.
Lehman Brothers filed for bankruptcy on Sept. 15, 2008. In late Tuesday trading, the two-year Treasury yield hit a high of 2.28 percent, its highest since Sept. 19, 2008, when the two-year was as high as 2.31 percent, according to Tradeweb.
From the LA Times
Many of us would rather not think about the possibility of President Trump getting reelected, but there is little doubt that he is thinking about it.
If Trump is serious about winning reelection, he may want to reconsider the sort of people he is appointing to the Federal Reserve. Virtually all political experts agree that a central factor in a president’s reelection prospects is the state of the economy in the year he or she is running. But Trump is appointing people who are likely to support rapid increases in interest rates, which very well could slow economic growth.
Unfortunately, most Americans don’t pay much attention to the Fed. People usually perceive its decisions about interest rates and inflation as affecting only Wall Street and big investor types. But the Fed has an enormous impact on the lives of ordinary workers. When it chooses to raise interest rates, as it has been doing for the last 15 months, it is making a conscious decision to slow the economy.