Anyone heard of Newton’s Third Law of Motion?
Newton’s Third Law of Motion states that for every action, there is an equal and opposite reaction. What this means is that pushing on an object causes that object to push back against you, the exact same amount, but in the opposite direction.
Who’s Yellen now? The Banks!
Janet Yellen, Secretary of the Treasury, is normally viewed as a person in favor of lower interest rates. However, if the Federal Reserve continues this trend of Interest Rate Hikes, we may see more bank failures! When interest rates were near zero, banks loaded up on long-dated, seemingly low-risk Treasuries. But as the Federal Reserve raises interest rates to fight inflation, the value of those assets decline.