Bond Market Girds for Bumpy Road as Powell Shreds Fed Playbook
- ‘Nimble’ approach casts uncertainty on speed, scale of hikes
- Sticky inflation challenges market view of short Fed cycle
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A consensus is building in the world’s largest bond market as the Federal Reserve moves to pull back its pandemic-era stimulus: There’s a rough ride ahead.
Fed Chair Jerome Powell on Wednesday said policymakers will take a “humble” and “nimble” approach toward raising interest rates to tame the fastest inflation in four decades, signaling a potential willingness to rip up the old policy-tightening playbook that many traders had come to expect.