Opinion
Investors fear Fed will abandon three rate cuts this year
The sell-off in US bond markets suggests investors are anxious that stubborn US inflation will force the Fed to opt for “one and done”.
Karen MaleyColumnistUS Federal Reserve chairman Jerome Powell can’t say it often enough: the resilience of the US economy means the US central bank has the flexibility to be patient before cutting interest rates.
But the latest sell-off in US bond markets suggests investors are now fretting the Fed will be forced to scale back its rate-cutting plans in the face of stickier-than-expected inflation, a sturdy US jobs market, and the latest surge in global share and cryptocurrency markets.
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