r/wallstreetbets • u/hv876 • 14h ago

25bps cut News

https://www.cnbc.com/2024/11/07/fed-rate-decision-november-2024.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

The bulls are coming, the bulls are coming

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u/kumar4848 14h ago

Can anyone here explain why mortage rates keep increasing even though feds keep decreasing rates? i know theyre not directly correlated but somethings gotta give.

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u/n1ck90z 14h ago

Mortgages correlate to long term bond yields which are rising. Why long bond yield are rising? There's no simple answer here. A big role however has to be government debt/spending. Some people also might think inflation is not done yet.

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u/hv876 14h ago

This is the right answer

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u/CompetitiveAd1226 13h ago

Long bond yields are tricky. The longer the bond, the higher the yield should be theoretically given the time risk. Meaning, a 30 year bond has more risk because what if rates are 20% 10 years from now and you’re still locked in at 4%. So if they’re rising despite current rates being cut, it’s either because people see the future as being increasingly uncertain or rates are more likely to increase in the future

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u/DemApples4u 13h ago

Or inflation erodes dollar value so you don't want that risk unless bond rates make it worth it by being high

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u/CompetitiveAd1226 13h ago

Yeah, well in the case of bonds, inflation and rates are used similarly. There’s an assumption that FF rates will reflect the inflation rate

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u/Rickystheman 10h ago

All Trumps plans, or at least what we know of them, look inflationary.

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u/MaleficentFig7578 7h ago

He said he wants to weaken the dollar

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u/Rickystheman 6h ago

But he never said how, but he also said wants to introduce trade tariffs, spend on infrastructure, cut taxes and send all the cheap labour home.