The Golden Age VII: End Game
The Fed cut the Federal Funds Rate on Wednesday, September 17, 2025 and the yield on 10 year treasuries increased instead of decreasing.[1]
The Fed has been juicing the economy and financing the expansion of government by progressively lowering interest rates for 40 years (The Greenspan Put).[2][3]
The end game is when investors demand higher interest rates to account for the dollar being worth less as the Fed prints money to both juice the economy with low-interest rate loans and to finance the government.
Gold has certainly done well in the year since treasury yields rose and went flat in response to the Fed cutting rates 3 times and then going flat, starting in September 2024. This is the fourth rate cute.[4]
End Note: FRED (Federal Reserve Economic Department) hasn’t updated their chart for September, so the most recent rate cut is not included in their chart. Additionally, this is the effective federal funds rate. Read the third link for details.
[1]Federal Reserve issues FOMC statement
[2]https://www.bloomberg.com/view/articles/2018-02-13/powell-s-fed-isn-t-about-to-end-the-greenspan-put
