Important to note that since April 2023, one year treasury rates have been higher than 1 yr CPI. That means that the dollar has been technically appreciating in value, making the national debt more expensive to repay.
This is unsustainable as the US needs dollar debasement to prevent an eventual default on its sovereign debt. Today's rate cut will begin to shrink positive real rates and provide a tailwind for asset prices, particularly "hard" commodity prices like gold and Bitcoin.
Important to note that since April 2023, one year treasury rates have been higher than 1 yr CPI. That means that the dollar has been technically appreciating in value, making the national debt more expensive to repay.
This is unsustainable as the US needs dollar debasement to prevent an eventual default on its sovereign debt. Today's rate cut will begin to shrink positive real rates and provide a tailwind for asset prices, particularly "hard" commodity prices like gold and Bitcoin.