“Has he succumbed to political pressure? Of course, we’ll never know and he’ll always deny it, but it certainly looks that way.” – 01:12
Patrick L. Young, Chairman & Founder of Exchange Invest, joins Remy Blaire to discuss the recent movements in Treasury yields and their implications for the U.S. and U.K. economies.
Patrick Young shares his insights on Powell’s remarks and the potential political pressures that may be influencing them. Young suggests that while Powell may deny succumbing to political pressure, the timing of his comments raises questions about the motivations behind them. He emphasizes that the focus on interest rates overshadows the more significant economic discussions that emerged from the recent Jackson Hole conference, particularly regarding the evolving nature of employment in the economy.
The conversation shifts to the U.K., where the rising two-year government bond yields have reached their highest levels since June. Young highlights the challenges facing the U.K. economy, including persistent inflation, high government debt, and a perceived lack of competent leadership. He draws parallels to the economic struggles of the 1970s, noting that the current government is viewed unfavorably by the public, which contributes to a negative outlook on the economy.