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Ripple Effect

The Fed Is About to Repeat History

Loading ...Andrew Packer

August 21, 2025 • 1 minute, 19 second read


Interest Ratesmarket history

The Fed Is About to Repeat History

With traders still betting on a quarter-point rate cut in September, we have just one simple question: Why?

After all, gold is near all-time highs. Ditto stocks. Even bitcoin, which hit an all-time high last week and is only down 8%.

The fact of the matter is, the Fed has a history of cutting interest rates while assets are still trending higher, if not near or at all-time highs:

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The Fed has often cut interest rates near market highs. (Source: Barchart)

But the good news for investors: 20 out of the past 20 times the Fed has cut rates near all-time highs, stocks have been higher a year later.

The issue? Most of those rate cuts came during the 1980s and 1990s, as inflation continued to tick down, justifying lower Fed fund rates.

Today, with inflation still on the higher end of the Fed’s target, and possibly even starting to track higher, it’s not quite an apples-to-apples comparison.

~ Andrew

P.S. Rate cuts are coming whether we like it or not — it’s just a question of the timing.

But depending on the speed and size of those cuts, they risk kicking off a “most terrifying bull market” in stocks, which sends those valuations into the stratosphere before they come crashing down to earth. And it could help gold push higher.

In short, investors won’t be in stocks because they want to, but because alternatives, like holding money in cash, will just look too risky.

If you have any questions for us about the market, send them our way now to: Addison@GreySwanFraternity.com.


The Grand Realignment Gets Personal

January 13, 2026 • Addison Wiggin

Sunday night, Powell addressed the probe head-on in a video post — a rarity. He accused the White House of using cost overruns in the Fed’s HQ renovation as a pretext for political interference.

The White House denied involvement. But few in Washington believed it.

What followed was bipartisan condemnation of the investigation. Greenspan, Bernanke, and Yellen co-signed a blistering rebuke, warning the U.S. was starting to resemble “emerging markets with weak institutions.”

The Grand Realignment Gets Personal
A Rising Sign of Consumer Stress

January 13, 2026 • Addison Wiggin

Estimates now indicate that the average consumer will default on a minimum payment at about a 15% rate – the highest level since a spike during the pandemic lockdown of the economy.

President Trump’s proposal over the weekend to cap credit card interest at 10% for a year won’t arrive in time to help consumers who are already missing minimum payments.

Not to fret, the other 85% of borrowers continue to spend on borrowed time. Total U.S. household debt, including mortgages, auto loans, student loans, and credit cards, reached record highs in late 2025, exceeding $18.5 trillion. This surge was driven partly by rising credit card balances, which neared their own all-time peaks due to inflation and higher interest rates.

A Rising Sign of Consumer Stress
Protest Season Amid the Grand Realignment

January 12, 2026 • Addison Wiggin

There’s an old Wall Street maxim: “Don’t fight the Fed.”

This year, you could add a Trump corollary.

A wise capital allocator doesn’t fight that storm. He doesn’t argue with it. He respects it the way sailors respect the sea: with preparation, with humility, and with a sharp eye for what breaks first.

In 2026, the things that break first are the stories. The narratives. The comfortable assumptions.

Protest Season Amid the Grand Realignment
Breaking: Government Budgets

January 12, 2026 • Addison Wiggin

Total municipal, state and federal debt service costs soared to nearly $1.5 trillion in the third quarter of 2025. Debt’s easy to accumulate when rates are low. Trouble is, you are obligated to refinance them even after rates go up.

It’s also a key reason why the Trump administration is demanding lower interest rates – even if it means reigniting inflation.

Breaking: Government Budgets