We've heard the government talking recently about "growing our way out" of the debt we're in. https://x.com/SecScottBessent/status/1925910800394232082
No one really knows what "growing our way out" means in practice. It could be pointing to financial stimulus and injecting capital into the market, a.k.a cutting rates.
But so far the consensus seems to say no cut...
Let's see what the AIs have to say.
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Does the recent bond market activity change anything?
"The bond yield curve’s recent volatility, with soaring long-term yields and a steepening curve, signals market concerns about inflation, fiscal deficits, and tariff uncertainty. This reduces the likelihood of a June 2025 rate cut, as the Fed will likely prioritize inflation control over immediate stimulus, especially with a resilient labor market. Watch the May CPI and jobs data for critical signals, but current bond market dynamics lean toward the Fed holding steady."
"Based on the latest statements from Federal Reserve officials, market pricing, and economic data, it is unlikely that the Fed will cut rates in June 2025 unless there is a significant negative surprise in the economic data before the meeting. The consensus is shifting toward July or later for the first rate cut, as the Fed seeks greater clarity on the impact of tariffs and inflation trends138."