Bill Baruch Weighs In on the Fed’s Strategy to Normalize the Yield Curve.

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And by the way, the probability of what I think this will actually occur, I am not incredibly confident on it. That’s why I’m using the option market. I agree with you. I think the Fed wants to normalize the yield curve. And here’s the reality. With the ten year real rates hanging around 2%, which is the highest level since 2007.

If they want to cause a recession, they will keep real rates up here. That’s that is the reason why they’re going to be cutting rates. It only adds to the intrigue of what’s going to happen this week. Don’t forget the jobs report, too. At the end of the week, there’s another Goldman story, by the way, making news today that we’re–