Jim Grant Sees an Era of Higher Rates That Could Last For Years

Odd Lots

Bloomberg

News, Investing, Business, News Commentary, Business News

4.4 • 1.6K Ratings

🗓️ 5 June 2023

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

If you think interest rates seem high right now, you might be operating with too short of a perspective. For a longer-term perspective, you'd want to talk to someone like Jim Grant. On this episode of the Odd Lots podcast, the founder and editor of Grant's Interest Rate Observer and a long-time financial commentator talks to us about why we're at the beginning of a longer-term trend of higher rates that could last decades. He argues that investors will struggle to shake off years of "buy the dip" behavior, a ZIRP mentality, and a misplaced faith in the Federal Reserve. We also discuss what it means for market behavior today.

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1:09.4	Hello and welcome to another episode of the Oddlots podcast. I'm Tracy Alloway.
1:13.8	And I'm Joe Wyzenthal.
1:15.2	Joe, did you see the Joltz number that just came out?
1:18.2	We are recording this May 31st, 2023. I did. Job openings back up.
1:23.2	You know, that's the thing like they keep thinking, oh, the labor market's going to cool. It's going to cool.
1:26.8	But here we are. Over 10 million job openings again.
1:29.8	Right. So job openings far exceeded, I think, any analyst estimate, 10 million openings for the last month.
1:36.7	And I guess the question is the market seems to be of two minds here, right?
1:42.4	You have a lot of people who seem to be talking about the inevitability of recession.
1:46.9	And yet you have the data that's still coming in stronger than a lot of people are expecting.
1:51.9	And of course, you know, those two things are related because of data keeps coming in stronger than
1:56.2	expected. Then maybe inflation doesn't start to go down and the Fed has to hike even more.
2:00.4	And it pushes the economy into recession.
2:02.8	But it does feel like not only is there a lot of doubt at the moment, but we're sort of heading
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