Biden's Spending Plans to Increase Inflation


Walking back. I am joined by brian. Westbury of i trust portfolio is the chief economist for i trust portfolio. You can follow him on twitter at westbury brian. I are going to atlanta and october to talk about the biden. Inflation and brian i am. This is so counterintuitive inflation went up and the ten year treasury went down. It is now at one point two. Oh nine percent at the lowest. I've ever seen it. Can you explain for the steelers fans and indeed me how it is that inflation can be on. everyone's mind. The ten year treasury dropped the one point two percent. I mean you there. There were a bunch of things going on what happened And we have the new delta variants out there. we have We we have the potential of a slowing economy. We have the biden administer administration and congress working on another three and a half trillion dollars spending you know and when you put all that together what what i think. A lot of investors were worried that we could shut down the economy again over that delta variant or That we were going to have a much slower growing economy as spending waned You know government spending government stimulus weight. And so i think that helped like worry. Investors that the economy would slow down but i think the real reason that the ten year treasury yield is so low and in fact a whole what we call the yield curve. Everything from three months to six months to one year. Five years seven years ten year twenty year bonds. is that the federal reserve is promising to hold short-term interest rate at zero. That's where it is. And so if you sort of think about this. If the fed says we are going to hold short-term interest rates at zero for three years well that means the three year treasury yield. well also be zero

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