Bond Market Starting To Push Back On Powell's Inflation View

The bond market is signaling skepticism about how quickly inflation will recede, challenging Fed Chair Jerome Powell's downplaying of inflation risks. Market participants note the risk calculus has shifted since the war started, implying slower disinflation expectations that could keep upward pressure on yields and complicate Fed policy normalization.

Analysis

The bond market is signaling skepticism about how quickly inflation will recede, challenging Fed Chair Jerome Powell's downplaying of inflation risks. Market participants note the risk calculus has shifted since the war started, implying slower disinflation expectations that could keep upward pressure on yields and complicate Fed policy normalization.