Consistent with expansionary fiscal policy plus tariffs hitting a non-passive Fed reaction function.
Figure 1: TIPS constant maturity 5 year yield (blue), five year breakeven (Treasury minus TIPS) (red), both in %. Red dashed line at election. Source: Treasury via FRED.
The breakeven rises by 11 bps since election day.
Figure 2: DXY dollar index (blue), Fed broad dollar index (tan), both normalized to 10/14/2024=1.. Red dashed line at election. Source: Fed via FRED, Tradingeconomics.com.
The dollar index is up 2.4% since election day.
Now that Musk has been appointed to the Dept of Tech Bro Corruption and has promised to cut 30% of federal spending – I believe him that we will feel some pain – https://www.msnbc.com/the-reidout/reidout-blog/elon-musk-trump-hardship-austerity-taxes-rcna177732
Also Trump announced he will do a Stalinist purge of woke generals – Orbán Hungary here we come – https://www.wsj.com/politics/national-security/trump-draft-executive-order-would-create-board-to-purge-generals-7ebaa606
Musk has said that he wants to remove fraud and corruption from government so it is fitting that he has chosen a name for his project, DOGE, in order to promote his personal investment in DogeCoin. It’s a self-serving grift, right from the start.
and why do we need two leaders of an efficiency department? trump has placed them on an uninhabited island, with a bullhorn but no power.
Matt Gaetz.
Now we know why Trump wants to bypass Seante approvals and get everyone through on recess appointments.