Fed Credibility on the Line as Bond Markets Watch the Meeting

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Source: The New York Times
Fed Credibility on the Line as Bond Markets Watch the Meeting
Photo: The New York Times
TL;DR Summary

Investors expect the Fed to raise rates at the meeting to curb inflation (about 90% odds for a quarter-point hike), but bond markets remain wary of a less predictable leadership under Kevin Warsh. If rates aren’t lifted, markets could push up inflation forecasts and trigger volatility in government bonds, as 10- and 30-year yields sit near multi-decade highs.

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