Macro
Breaking
Fed's Goolsbee Explains Quarter-Century Bond Yield Highs as Inflation Persistence Complicates Rate Path
What’s happening
Federal Reserve Governor Austan Goolsbee addressed the jump in bond yields to 25-year highs, attributing the move to persistent inflation expectations and market repricing of the Fed's rate path. Core inflation data coming in hotter than expected has forced bond markets to extend their forecast for elevated rates.
Market impact
The Fed's own officials are now publicly acknowledging that disinflation is stalling, which undermines market expectations for aggressive rate cuts in 2025. Equity valuations that priced in a 2024-2025 rate-cut cycle face downside risk if the Fed signals a longer hold at elevated rates.
Sources (2)
The articles Pulse read to write this story- Why bond yields hit quarter-century highs, according to the Fed's Austan GoolsbeeYouTube - Yahoo FinanceNeutral 0
10-year Treasury yield jumps as September core inflation comes in hotter than expectedCNBC Top StoriesStrong bearish −76
Written by Pulse AI from the articles above. Always check the original reporting before acting on it.