Traders Set to Test Powell Push to Delink Hikes From Taper
- Jobs data seen fueling speculation on September dot-plot shift
- Risk is repeat of June, when hawkish signal spurred flattening
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Bond investors may not wait long to start pushing back against Federal Reserve Chair Jerome Powell’s efforts to delink the start of asset-purchase tapering from the countdown to eventual policy-rate hikes.
Since Powell last week said the central bank could begin reducing its monthly bond buying this year, traders have stuck with early 2023 as the likely timing for the Fed’s liftoff from zero interest rates, and Treasury yields have barely budged.