Analyzing the November jobs report released Friday morning, Commonwealth Financial Network CIO Brad McMillan spotlights the 10-year Treasury yield (^TNX) as a key metric to watch. He explains how yields have climbed on assumptions of imminent interest rate cuts by the Fed and expected economic slowdowns. However, stronger-than-expected hiring data challenges that narrative.
McMillan believes the report signals economic acceleration rather than slowdown. Consequently, McMillan expects Treasury yields will face upward pressure after pricing in future economic data prints.
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Ordinary Americans are winning and the Fed is Big Mad that they can’t destroy the American Dream. These economists don’t understand the psychology of the streets right now. If they persist and throw the economy into a recession, it will create an opening for Trump to retake the White House and that will be the end of everything. The rational thing to do is to be patient with Millennials, let the men make more money so that they can get married to their high-earning female counterparts, and stop trying to engineer buying oppportunities for the Bill Ackmans of the world.
What these “experts” on the economy are ignoring is that 800# white gorilla with pink and purple polka dots in the middle of the Capitol rotunda floor dancing around, playing the guitar while singing “Hound Dog” which euphemistic spectacle is the “formal” advent of what I call the reality of the Equity Spending (ES) process that is more commonly known as deficit spending and or quantitative easing (QE). We’re talking about the electronic generation of we the peoples’ $s in order to meet federal expenditures when there are insufficient funds available from our defunct federal tax revenue system that will never, cannot ever, never be revived. The crux of the Equity Spending reality/process being that even though we the peoples’ electronically generated ES, if you will, $s spend exactly the same as we the peoples’ forty-hour workweek paycheck $s, it is nonetheless impossible to actually borrow or payback, for that matter, we the peoples’ electronically generated ES $s because these ES $s are in fact, we the peoples’ electronically generated ES $s, and YES, it is all just that simple, as far as “The Big Picture” is concerned.
I said all of that in order to make the point about the only reason why the economy/Stock Market is doing as well as it is doing is because Fed Chairman Powell was allowed to pump about $4 TRILLION of, we the peoples’ electronically generated $s into the Stock Market back in 2018, during the COVID-19 pandemic in order to sustain that “vital institution”. Then too, there was President Trump presiding over the greatest amount of federal spending in the entire history of creation in the form of Equity Spending/deficit spending to the tune of about $8 TRILLION during this same fiscal year which ES spending has been the “key to our success” that no one in the world, but little old me ever talks about, publicly.
As for controlling inflation, there are two recognized methods with one being to raise interest rates which makes the rich a lot richer while making the poor a lot poorer.
The other tried and true method for actually defeating inflation is for there to be a permanent return to the OPA system that stands for the Office of Price Administration that is and was a system of using price controls in order to tamp down the greed/avarice of corporate America back during and immediately after WW2 which greed/avarice is the root cause for inflation, and the OPA system will eventually have to be reinstituted, it is just inevitable.
I can’t post the title for my singularly unique quintessential literary contribution that uses a fictional and a non-fictional format in order to illustrate exactly how and why the Equity Spending reality/process works, but I can post my full name – Oscar Dean Windham.
Why would the Fed cut rates next year when the labor market and the economy is still strong, when that will only add more fuel to the fire of inflation?
Gawd bless Murica 🤓🖕
The root of inflation is indeed overprice housingvand home equity that make delusional wealth effect. Wealthy people keep too much spending fire inflation. Feflated home value will rapidly reduce inflation without hurt most of people.
If he says there will be no cut why does she ask him about a Fed put?
♈The key to knowing the state of the economy. Question: Can I afford in the Biden administration what I could afford in the last administration? And the answer is: NO, you cannot. If you are living your life on credit, you do not even own your life.