The Federal Reserve claims to be independent.
In other words, the central bank is free to set interest rates, target bank reserves and conduct monetary policy independent of influence from the fiscal authority and government decisions on spending and taxation.
However, when US federal spending is elevated, and the government needs to finance those eye-popping outlays by issuing debt, the conduct of monetary and fiscal policy can no longer be truly separated.
In this 35-minute video presentation I'll explain exactly how politics and government policy are influencing the Fed, forcing the central bank's hand on rates.
I'll also explain why I believe it may be bullish for the US bond market over the short-to-intermediate term.
To give the paid tier of Smart Bonds a free test-drive for the next 60 days, tap here:
DISCLAIMER: This article is not investment advice and represents the opinions of its author, Elliott Gue. Smart Bonds is NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters and posts should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision.
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