You Can’t Have a Booming Economy AND Zero Rates

Padgett contends rate cuts and a booming economy are mutually exclusive, and higher rates—not zero rates—actually powered the AI investment boom.

• Contradictory goals: Douglas Padgett argues Trump wants both zero rates and a booming economy, but higher rates historically come with more income and growth, not less.
• Treasury's buyback is a swap: Padgett says Bessent's 'buyback' is really a swap adding buying pressure to the long end, which can't structurally lower yields given massive Treasury issuance.

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