The Weekly Fix: Fed Rate Peak Suddenly Comes Into View
Photographer: Samuel Corum/Bloomberg
Welcome to the Weekly Fix, the newsletter that always likes to have gravity on its side. I’m Bloomberg’s chief rates correspondent, Garfield Reynolds
A week that started with a wall of worry that the Federal Reserve’s ever-higher rates path meant endless pain for bonds ended instead with an epic rally. The trigger was the first serious downside surprise for inflation in a long time. Headline annual CPI came in under the weakest survey estimate, something that hasn’t happened since late 2020. That brought enormous relief across assets, especially after Federal Reserve Bank of Philadelphia President Patrick Harker said he expects the pace of hikes to slow.