In this short clip from Macro-To-Micro Options Power Hour, recorded on Jul 23, 2025, Samantha LaDuc and Hans Albrecht discuss why the common expectation that U.S. interest rates will fall may be misguided.
Samantha argues that despite market optimism and political pressure from Trump to cut rates, there’s no strong confirmation that yields are heading lower—unless a recession emerges.
She highlights that consumer lending is weakening and large banks are pulling back, which could lead to economic strain if growth doesn’t materialize as hoped.
Overall, she sees risks of persistently high yields and inflation, especially with political interference in the Fed and a lack of bond demand on the long end.
