The bond market has diverged from 40-year historical patterns: when the Fed signaled rate cuts, long-term interest rates (10-year bond) rose instead of falling, signaling inflation concerns and a breakdown in the traditional monetary transmission mechanism.
factualpending
Speaker
Jaime CarrascoEvidence Quote
“if you look at if you look at the the bond market for the last year and a half when when the FED started started signaling that they were going to cut interest rates for the last 40 years every time that they cut rates interest rates in the long end of the curve have tended to go down this time they didn't they started to go up so right by default that's a complete uh Divergence of the last 40 years”
Created: 8/11/2026, 6:29:22 AM
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