The interest-rate fever has broken for the moment. The 10-year T-note touched a two-year high yesterday at 2.45 percent, mortgages 4.25 percent. Both improved a bit today.
- We may get a pause at these levels, even improve a bit more, but the overall move up is not over.
- All economies have speed limits. Push tax cuts or spending, and any excess growth just adds to inflation. To raise the speed limit, raise productivity and/or immigration.