Fed or White House
The surprise election of Donald Trump to the White House has produced another surprise. Sharply rising interest rates. What was for 10 year treasuries an interest rate of 1.783 on Monday is on Friday 2.113 % as I type this article.
The FED has made no announcements, this interest rate swing is purely based on the speculative anticipation of a Trump presidency and the policies he will introduce. This is significant as for the last several years the specter has existed that the FED primarily controlled the economy and did so purely with the interest rate lever and the QE purchase lever.
Whether Trumps policies will be good for the nation or not clearly remains to be seen. Rising interest rates bode well for those looking to get income out of a portfolio, assuming its not purely rising rates from rising inflation. Borrowers clearly will have a harder time of it. All in though we need to get rates up off the floor, and in many cases up from under the floor, and back to a normal range.