If the Fed Cuts, Long-Term Yields are Going to Rise in their Face
If the Fed Cuts, Long-Term Yields are Going to Rise in their Face
Arcadia Economics: 7-9-2025
Amidst escalating geopolitical tensions and a turbulent financial landscape, few voices command the attention of Dr. Jim Willie, famously known as the “Golden Jackass.” With a reputation for prescient, albeit often contrarian, analysis, Willie offers critical insights into the forces shaping both the Middle East and global financial markets.
As financial markets keenly await the Federal Reserve’s next move, particularly heading into July, speculation is rampant regarding a potential rate cut. Conventional wisdom often suggests that central bank rate cuts are intended to stimulate the economy by lowering borrowing costs across the board, including long-term interest rates. However, Willie offers a starkly different outlook.
He contends that if the Fed proceeds with a rate cut, long-term US interest rates are not only unlikely to fall but are poised to “rise in their face.” This counter-intuitive prediction directly challenges market expectations and suggests underlying systemic pressures could override the Fed’s intended policy direction.
While the full rationale is explored in his analysis, such a scenario often implies a lack of market confidence in the central bank’s ability to manage the economy, accelerating inflation expectations, or a flight from sovereign debt amidst growing instability.
Beyond the intricate dance of monetary policy, Dr. Willie also lends his considerable insight to the fraught geopolitical situation engulfing the Middle East. With tensions between Iran, Israel, and the United States continuously simmering, Willie dissects the latest dynamics.
He offers a perspective on how these global flashpoints could ripple through the financial system, exacerbating existing vulnerabilities or creating new ones.
His analysis underscores the critical interconnectedness of global politics and financial stability, suggesting that events in one sphere inevitably influence the other. For Dr. Jim Willie, the “Golden Jackass,” these are not isolated concerns but pieces of a complex puzzle that demand a holistic understanding.
Dr. Jim Willie’s unique perspective and bold predictions serve as a crucial counter-narrative to mainstream financial commentary.
For a comprehensive understanding of these complex issues – from the potential fallout of a Fed rate cut on long-term yields to the intricate geopolitical dynamics shaping the Middle East – the full video discussion from Arcadia Economics featuring Dr. Jim Willie is essential viewing.
It promises further insights and information that challenges conventional wisdom and prepares viewers for the potential shifts ahead.