the Fed may be hesitant to cut rates with tariffs around the world raising inflation. Its hand may be forced if rates continue to spike and recession fears grow.
Even so, while a rate cut could impact short-term rates, it could backfire and fuel a bigger spike in long-term rates as traders speculate a looser Fed will lead to more inflation over the long term.
the Fed may be hesitant to cut rates with tariffs around the world raising inflation. Its hand may be forced if rates continue to spike and recession fears grow.
Even so, while a rate cut could impact short-term rates, it could backfire and fuel a bigger spike in long-term rates as traders speculate a looser Fed will lead to more inflation over the long term.
Year
10-Year Treasury Yield
1980
~11% to 12%
1981
Peaked around 15.8%
1982
~14% → 10% (falling)
1985
~10%
1989
~8%