The Federal Reserve can look past low liquidity in the Treasuries market and continue with its rate hikes, according to strategists at JPMorgan Chase & Co.
While the world’s biggest bond market endured some illiquidity recently, the impact on prices isn’t as severe as during the onset of the pandemic, according to a note Tuesday from a team including Jay Barry. As such, it’s not affecting financial stability and the Fed will make that distinction when deciding on its rate hikes, they said.
