Why the Fed won't be cutting rates 'anytime soon'

Now get back. Get back to the mundane. I don't know. Get back to something. We're going to talk about the case I love this. Hundred Year Bonds. The case for 100 Year Bonds. Got it. Joining me now is our own Taylor Riggs Co, host of the Big Money show right here on Fox Business and a very old friend of mine, Todd Buckholtz, who was economist and author of The Price of Prosperity. Todd, you stimulated this segment by your note to me and your op-ed piece. I'm going to tell you, I'm going to tell you. When I was in office, I talked to Donald Trump about this many times. And every time I said 100 year bonds. He loved it. He said, yes, we have to do that. Yes. And then I'd say, you know, Japan's doing it. Well, we have to do it. And I said I think Mexico's doing it or China's, I don't know. Whatever they're doing. Yes, we have to do that. There wasn't a lot of total enthusiasm in the others in these Oval Office meetings. But you have Trump on your side, top buck. Let's start with that. That's not nothing, by the way. That's not nothing. And this has been one of the biggest blunders in American economic history. Because think about it, we could have locked in our borrowing at 1 1/2% for 100 years, but instead we're now borrowing at over. This would have been more like what during the meltdown or basically from 2000. I wrote a piece in the Wall Street Journal back in 2012. So basically since the financial crash of 2008 until two years ago we had the opportunity to lock in these rates and instead we we now spend more on interest on the debt than defense and it didn't have to be and with and Yellen is selling Taylor Treasure secretary Yellen I'd be respectful is not personal it's never personally just saying she's selling the bulk of the debt at the shortest end of the curve 91 day treasury bills. OK. I don't know why they're doing that. I'm not sure what the rationale is, but in this inverted yield curve the let's see the 10 years about I'm going to call 4 1/2% sure she's she's selling all the paper at 5 and a quarter makes no sense to me. And the two years at 4.88, it's creeping up today. So you're paying more on the short and then you are on the long end because that inverted yield curve, I sort of like the idea of century bonds because we had unlimited QE forever -0 interest rates. So from my generation and my future generations, we could have been saving so much money that you talked about. Instead we're issuing rates now I'm paying that debt expense on yields that are triple what they were just a few years ago right around COVID. So we're just wasting that money and burdening the. That's right look at you know, selling all these short and rolling over every three months is not funding the debt properly. It's not bonding the debt out the way a company would bond it out. And in your piece you said you cited a whole bunch of companies that have sold 50 to 100 Disney sold bonds. They call them Sleeping Beauty bonds. Now Norfolk and Southern Railroad, a railroad sold 100 year bonds. Will there be railroads in 100 years? It doesn't matter. They were able to sell those bonds, but the Treasury just decides to blunder. I don't know. You know, every night there are 120 productions around the world of the musical Hamilton. I think every night Hamilton should come forward and weep for the disaster. But is that the treasury progenitor of U.S. Treasury debt, Alexander Hamilton? Just in case Cardi B happens to call me. Is that her name? Cardi B? Yeah. I'm still really from that in the last segment. I want it. You know what? I'm in that moment. I'm very current. I'm going to turn her into a supply cider. Next thing you know, bust a dance move and can you. Well, you know, I've done this before Taylor Riggs, before we descend any further into this, just the liquidity issue, I I wonder they're probably going on the front end of the curve because it might be more liquid than maybe a century bond of 100 year bond. But I still think that there is appetite for U.S. debt and I would argue that now is the time, right? Well, our average duration of debt is five years, Britain is 15. Can we at least catch up to the Brits on our way to 100, just on the last on the 100? And then it will. But who? Who? Mexico has long Mexico, Austria, Austria, Ireland. Belgium. Ireland, my favorite, with a 12 1/2% corporate tax rate. China says sold long, long bonds. China, Well, Japan has sold long. Japan has sold long bonds. Yeah, they got a lot of debt. They got more debt than we have. And. And Janet Yellen was asked about it when interest rates were 1 1/2%. And she said, oh, we've looked at it and we're just not, you know, we've looked at it seriously. I'll tell you. Not going to do it. I'll tell you what to forecast in my vote. If Mr. Trump wins, he will restart all of the oil and gas drilling. That will put more supplies on the market from that production. That will lower energy costs substantially and will spill over. Hang with me to a lower inflation rate and much lower interest rates. At that point, it's time to go to 50 or 100 bonds. If he ever gets second chance, I believe that is exactly what he's going to do. Taylor, in our last minute, the Fed minutes came out today. There'll be no interest rate cuts in my lifetime. Nope. Larry, you and I are obsessed with Fed meeting minutes. We're making them fun again. We're making them great again and not boring. We're the only ones in the building. We're the only only ones building. But we're making them fun again. Look, they're actually admitting that yes, maybe hikes. I don't think hikes are going to happen, but they're understanding that cuts likely aren't happen. Maybe you could get one in December, but I think they came out from the minutes of that meeting and saying we could look at maybe hikes, but we aren't cutting anytime soon. Higher for longer, higher for longer. The center of intellectual gravity on this board is a fellow named Christopher Waller. OK, he was appointed during the Trump administration. I had something to do with that. He has said for a while the evidence on inflation is not good enough to cut rates. And I think people should listen to him. You know why? Because other Fed governors and presidents listen to him. Let's make the list of team transitory right? Joe Biden, Janet Yellen, Paul Krugman and all sorts of eminences. A shortest inflation was just a passing thing. Need no need to worry about. Got to give Larry Summers 2. Democrats Jason Furman and Larry Summers got to give those Summers called. Summers called the spending bill in 2020, in 2021 of March. The 1.9 trillion Summers calls that the original sin of inflation. I think it was dead. Larry and Jason have shown great integrity. No, I agree. All right, Todd Buckles, very good to see you. Good to see you, Larry Taylor Riggs, always. Thank you very much for helping out. Now folks, be sure to catch Taylor, along with her Co host Brian Brenberg and Jackie De Angelo's on The Big Money Show weekdays 1:00 PM Eastern, right here on Fox Business every day.