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n. Illinois | First off no one knows where interest rates are headed.
Trump can get his Fed Chairmen in place who proceeds to lower rates on the short terms IE the Prime rate, But to lower rates on the longer end (IE Fixed rates) it takes the Federal Reserve to get back into the business of printing more fake money which will result in higher inflation rates.
The people in real power however hate Trump and have lost all sense of reality. They could crush the long end of the yield curve by just not being a net buyer of Long term Treasuries. This would cause the Treasury to offer higher and higher rates to attract the funds back. (historically Japan and China and the Fed since 2008) have been the primary buyers of the long term debt of the United States. However both China and Japan have stopped increasing the amount of US Bonds they own and have actually begun to shrink their holdings. The Fed Res is allowing their bond portfolio to shrink IE they are no longer creating massive amounts of new fake money like they did under the Biden Administration. We continue to do nothing about the massive Deficit our Federal Government runs (current estimates are between 1.7 trillion to 2.2 Trillion per year) all of which needs to be financed by new borrowings. If you want to get rid of the Republicans in 2028; have the bond vigilantes force the Treasury to increase long term rates from the current 10 year t bill of 4% to 6% and crash the economy.
The 50 year mega cycle is going to end and we will have a credit contraction no matter what the people in power do. Just have zero idea of when and the trigger as to why.
So lock in your rates for as long as you can for a low as you can. Eliminate as much short term debt as possible. Short term debt is like crack cocaine it feels good at first but its the one that will financially kill you if not managed properly.
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Interest rates
