The Fed Is Chasing Donald Trump's Tail

Finally, the Federal Reserve is raising interest rates again. Except… haven’t rates already risen? Since the beginning of November, the yield on the 10-year Treasury note +0.62% has climbed 180 basis points to 2.5%. The spike began at the same time as Donald Trump’s election. As we’ve argued in the past, the Fed is irrelevant. The market has already driven interest rates up in response to Trump’s election and a more positive economic outlook. Janet Yellen is only following the signals from the market.