by Chris Marcus, Miles Franklin:
Much of the attention in the financial markets this week will be focused on the Federal Reserve’s upcoming meeting on Wednesday. Where it’s widely assumed that the Fed will raise its short-term interest rate target by 25 basis points.
So why is this particular meeting so interesting?
Primarily because the market’s reaction will likely offer valuable insight into how the next stage of the current bubble cycle unfolds.
Interest rates on the benchmark 10-year U.S. treasury have risen from approximately 2% in September of 2017 to the current level of 2.85%. Largely in response to the Fed’s gradual increase in short-term interest rates and their unwinding of the balance sheet (which at least according to data on the Fed’s website does appear to actually be occurring).