by Chris Black
Mortgage rates jumped from a record low to a ten year high in one week.
At this pace mortgages will be at 5% before the Fed even raises base rates from zero.
Bye, bye housing market.
This Was The Biggest Rate Shock Since Volcker's Intermeeting Rate Hike In 1979 t.co/otaSGFOZEW
— zerohedge (@zerohedge) February 11, 2022
That was the plan all along.
The Fed has its own agenda, it does not care about protecting U.S. markets, nor does it even care about protecting the U.S. economy in general.
The Fed has created a Catch-22 situation in which inflation will hit hard regardless of whether they hike rates.
Get ready for the yield curve to flatten again and for long term Treasury bonds to be dropped by most foreign investors. Also, get ready for the value of the dollar to plummet further, after a short initial spike, as stocks fall. I believe the Fed will stick with rate hikes this time because they have to at least be seen as “trying” to do something about inflation – the same inflation the Fed themselves created through over a decade of fiat money printing and easy credit.