Inflation-Vexed Bond Traders Are Unconvinced by Hawkish Fed Talk
- FOMC minutes gave no hint that they would speed up rate hikes
- Long-end yields advance shows concerns of inflation heating up
Why Inflation Is a Bigger Risk to Stocks Than Rising Rates
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The Federal Reserve may think it’s sounding more hawkish these days, yet the debt markets don’t quite buy it.
Traders are pricing in less than the three quarter-point rate hikes that officials have signaled as likely this year, and the market is still far from the four increases that some economists are predicting. That’s even after minutes from January’s policy meeting released Wednesday showed central bankers see the economic momentum to plow onward with more tightening.