The Fed’s Illusion of Control

BOND YIELDS ARE TALKING—THE FED’S JUST WATCHING.

A 25 bps tweak won’t change how most people spend—but a market rally will. In today’s Truthbomb, I go straight to the source of truth: the yield curve. From my days as a bond trader to today’s “data blackout,” I’ll show why rates only indirectly touch your wallet while asset prices directly move your confidence—and your consumption.

What’s inside:

• Why the bond market is still the best arbiter of economic reality
• Fed Funds → Prime Rate → your APRs (and why that chain is leaky)
• Credit card rates above 20%: proof the Fed’s lever is imperfect
• The wealth effect: stocks & home values drive spending more than 25 bps ever will
• When the Fed truly matters (recession extremes) vs when it’s a spectator

Truthbomb of the Day:
THE FED CAN TWEAK RATES--BUT MARKETS MOVE MINDS. IN THE END--CONSUMER CONFIDENCE AND WEALTH DRIVE THE ECONOMY--NOT 25 BASIS POINTS.

If this helped you see through the noise:
Subscribe, hit the bell, and share with someone who still thinks 25 bps changes everything. I drop Wall Street Truthbombs daily—before the market figures them out.

Follow for more
Substack: substack.com/@wstruthbombs
X: x.com/WSTruthBombs
Patreon: patreon.com/wstruthbombs
BlueSky: bsky.app/profile/wstruthbombs.bsky.social
TikTok: tiktok.com/@wstruthbombs

#WallStreetTruthbombs #BondYields #YieldCurve #WealthEffect #FederalReserve #InterestRates #Macro #Stocks #ConsumerSpending #CreditCards #PrimeRate #Markets #Investing #Economy #FedPolicy

Support the show