KC Fed Honcho Explains AI & Interest Rate Fear By Way Of Seven-Layer Dip

One of the defining problems of journalism in the current era is explaining complex macroeconomic and financing issues to the plebs in terms that are easily understandable. 

Credit to this economic power player sharing this piquant observation . . . 

The relentless rise in long-term interest rates is starting to have effects on more parts of the economy, Kansas City Fed president Jeff Schmid told Axios . . . 

"Even on the mortgage rate side, it's starting to affect home prices, which is how the price of credit works relative to valuation," Schmid said at a conference on investing in rural America hosted by the Federal Reserve Bank of Richmond in Asheville, N.C.

An even better explanation . . . 

"The beauty of a seven-layer dip is you have equal amounts of beans and sour cream," Schmid said. Right now, with AI and data centers, "there's too much beans in that dip," he added.

Read more via www.TonysKansasCity.com link . . .

The Fed's long-term interest rate problem