The FED in a fog: The rate cut paradox
The Federal Reserve (FED) lowered its interest rate by a quarter of a percent three times during the fall, mirroring the same actions taken last year. Initially, these reductions led to a drop in rates; however, by January of this year, following three rate cuts in the fall of 2024, 10-year bond rates were 75 basis points higher than before the Fed began its rate reductions. This year, similar to last year, rates initially dropped but have since started to rise.
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(Original air-date: 12/12/25)
