Latest / The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy
What the Fed Makes of the Small-Cap Rally Right Now
The Russell 2000 is up over 3% in the last five days while the S&P 500 and Nasdaq drift sideways or dip. Lucas and Luna dig into why small caps are suddenly outpacing large caps, what the Fed sees in this rotation, and whether it signals genuine confidence in a soft landing or just a short-covering bounce in the most battered corner of the market. They look at the rate picture: the ten-year yield has slipped to 4.49, the two-year is at 4.21, and the Fed funds rate sits at 3.62 — a steep but narrowing yield curve that historically favors smaller companies. They also connect it to the May CPI…
The skinny
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