You know Your Survival Guy isn’t necessarily unhappy when yields are high. America’s retirees deserve yields they can sink their teeth into. Today’s 30-year Treasury yields are the highest since before the Financial Crisis.
At the opposite end of those yields is the U.S. government, attempting to pay its bills with a rising debt service load. Interest payments on national debt have climbed to all-time highs.
On Friday, Federal Reserve Chairman Kevin Warsh will give his first speech as chairman at the annual Jackson Hole summit. Many people are looking for some hint as to what Warsh and the Fed will do in regards to rates. It isn’t Warsh’s job to lower interest rates for the federal government, but undoubtedly the burden of high interest payments is a major focus of not only Federal Reserve officials, but most of the big decision makers in Washington, D.C.
Action Line: Warsh must weigh high interest rates against inflation and jobs, as per his mandate. He has also vowed to play his cards close to his chest, so the Jackson Hole speech, which has become somewhat of an annual opportunity for Fed chairs to lay out their plans for the future, may not be as revealing as the media has come to expect. Warsh may simply reiterate his plan to end inflation, without many specifics. Click here to subscribe to my free monthly Survive & Thrive letter.
