The ten-year T-note is up above two percent and rates are rising overall — is this having any effect on our economy?
“I make two things of it, and they’re contradictory,” said CNBC’s John Carney. “Some people worry that the positive signs we’ve seen in the economy means that the Fed is going to pull back on some of its low-rate policies, maybe QE [quantitative easing]…or it might mean that the economy is actually doing better and people are putting money to work in places other than the Treasury. So that’s a good sign.”
“The economy’s still not in great shape,” countered The New York Times’ Catherine Rampell. “I still think there’s reason to be concerned about where the economy is headed because of a lot of different factors, including what’s happening to government budgets and uncertainty about Europe and various other things. So, it’s not terribly surprising we’re still seeing some concerns reflected in markets.”
For more analysis, listen to the full audio above.
Meanwhile, Catherine Rampell offered these #longreads picks for the weekend: