If the Fed cuts rates next year and the long end of the bond market revolts and spikes—as it did in 2024 when 100bp of cuts failed to lower long yields—it would be devastating because mortgage debt, auto loans, student loans, and corporate bonds are all priced off the long end, leaving the Fed no good options other than yet more money printing (operation twist / balance sheet to $20T).
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Speaker
Michael PentoEvidence Quote
“mortgage debt is priced off the long end. Auto loans, student loans, and corporate bonds are priced off the long end of the bond market.”
Created: 6/18/2026, 1:59:11 PM
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