Are rising long-term interest rates really bad news for the U.S. economy?

Yeah, so rates are in the news and it's not just the short rate, it's the long rate also.

We've got a Fed meeting next week.

It makes me very nervous.

I believe that the public and the politicians believe that the Fed has the power to micromanage the economy.

And the debate is, well, will they hike by 25 basis points or keep the short-term rate constant? To me, it is a sideshow It doesn't really make any difference whatsoever, 25 basis points or zero.

And anyways, the long rate is much more important for the economy than the short rate.

How so?

So let's kind of go through the basic logic of the long right.

And just to preview a little bit, I've got a much different narrative than what we hear in the news and in the media from our politicians and indeed from our leaders at the Federal Reserve.

So let's go through the traditional logic of the long right.

Yeah, so rates are in the news and it's not just the short rate, it's the long rate also.

We've got a Fed meeting next week.

It makes me very nervous.

I believe that the public and the politicians believe that the Fed has the power to micromanage the economy.

And the debate is, well, will they hike by 25 basis points or keep the short-term rate constant? To me, it is a sideshow It doesn't really make any difference whatsoever, 25 basis points or zero.

And anyways, the long rate is much more important for the economy than the short rate.

How so?

So let's kind of go through the basic logic of the long right.

And just to preview a little bit, I've got a much different narrative than what we hear in the news and in the media from our politicians and indeed from our leaders at the Federal Reserve.

So let's go through the traditional logic of the long right.