Fed signals HIGHER rates as inflation fears surge

• Fed minutes indicate a consensus for higher interest rates and an upside risk to inflation.
• Despite strong demand in a 10-year note auction, long-term yields are expected to continue rising due to fiscal issues and oil prices.
• AI's economic impact is mixed, with no clear productivity boost yet, but inflationary pressures from infrastructure build-out are noted, alongside falling AI prices.
• Small business bankruptcies are rising, and the Fed's policies are seen as disconnected from the average American's struggles.
• Gold is discussed as a hedge against currency debasement, with central banks buying, but it's currently tumbling due to a soaring dollar and higher yields.

The discussion centers on the Federal Reserve's hawkish stance, with all participants viewing higher rates as appropriate and inflation risk skewed to the upside. Despite a strong 10-year note auction, experts anticipate continued steepening of the yield curve due to fiscal deficits, high oil prices, and capital competition from AI. Concerns are raised about the impact on small businesses and the average American, while gold's role as a hedge is debated amidst its recent decline.