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Bond Traders Trap Fed in No-Win Situation as Rate Decision Looms

  • Northern Trust, Western Asset doubt the Fed will act this year
  • Fed ‘beholden to what market participants say,’ Robertson says
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Turmoil in Bond Market Weighs on Stocks

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For all the talk that central banks have taken over financial markets, the paralysis gripping the Federal Reserve over upsetting bond traders sure makes it seem as if it’s the other way around.

Time and again, Janet Yellen and other Fed officials have tried to jawbone investors into believing they were finally ready to raise interest rates. Yet time and again, whether it was because of Brexit, a slowing Chinese economy or just lackluster growth at home, they lost their nerve.