TAG Industrial Watch: August 8 2026

Last week, the Federal Reserve elected to hold interest rates on bank-to-bank lending steady at a range between 3.5% and 3.75%. Despite all of the tough rhetoric on keeping inflation in check, Fed chairman Kevin Warsh stood idle. The bond market responded with a sell-off, pushing interest rates on the 30-year U.S. Treasury bond to nearly 5.3%, representing the highest level since July 2007. Given that the national debt has ballooned by 344% over the last 19 years to nearly $40 trillion today, interest rates have yet to account for the risk in holding any long-term debt denominated in dollars. Throughout world history, government debts have always driven runaway inflation and soaring interest rates, and today is no different. As foreign governments continue to accumulate gold in lieu of U.S. Treasuries at a record pace, pressure in the bond market continues to mount. Understanding that interest rates fundamentally have nowhere to go but up, industrial investors should take advantage of today’s lending environment to liquidate underperforming assets and secure specialized properties with tenants that will benefit from inflation.

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