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Real Vision: Finance & Investing

Yields Spike, Stocks Sag, the Fed Fiddles

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.11.1K Ratings

🗓️ 19 October 2022

⏱️ 33 minutes

🧾️ Download transcript

Summary

The yield on the two-year U.S. Treasury note climbed to its highest level since 2007 on Wednesday, as investors priced in the probability that the Federal Reserve will maintain a hawkish policy stancy until there are meaningful signs of an easing in core inflation. The impact of higher interest rates is already being felt in key areas of the economy, such as the U.S. home mortgage market, where applications for both new purchases and refinancing have plummeted and builder sentiment has sagged to 25-year lows. Inflation in the U.K., meanwhile, reached its own 40-year peak, up 10.1% from a year ago. “King Dollar ... Reign of Terror!!” is the headline on Greg Weldon’s latest market commentary, and he has a point. Weldon, the CEO of Weldon Financial, joins Maggie Lake for today’s Daily Briefing to talk about the effects of a strong U.S. dollar on markets. We also hear from David Rosenberg about the down-the-line impact of the Fed’s massive liquidity withdrawal and what we could be facing come 2023. Watch the full conversation between David Rosenberg and Maggie Lake here: https://www.realvision.com/shows/the-essential-conversation/videos/forewarned-is-forearmed-reflecting-on-black-monday-0aOg?tab=details. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

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modules and the real vision academy. And you get to watch a host of other shows that

0:56.1

dive deeper into the markets and how things might play out over the next six months.

1:00.8

This is exactly the kind of content that we all need right now, given what's going on.

1:05.7

All right, time to get back to the rest of the world. Have the central banks lost control

1:10.3

of the bond market. Welcome everyone. Joining me today is Greg Weldon, founder of Weldon

1:15.7

Live. Hi, Greg. Great to see you. And Maggie, what's happening?

1:19.4

So we chose that question right from your research, actually. You sent over a couple of

1:24.1

notes. And as I was reading them, it struck me that you sound like you're worried that

1:28.5

maybe they are losing control of the situation. What's your thoughts when it comes to what's

1:32.5

happening with monetary policy around the world? Wow. So we have four or five hours to discuss

1:37.8

what's happening around the world. Well, let's start with the fact that you've got James

1:42.6

Bullard now. Yes, yes. I mean, I'm posing the question. And now you're posing the question

1:48.0

to me. And I mean, the answer is the odds are rising that the answer could be yes. I'm

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