Recalibration: Powell at a House Financial Services Committee hearing in Washington. He says the US central bank is in no rush to cut interest rates. — Bloomberg
NEW YORK: An uneasy calm that has pervaded the US bond market could break in coming days, as looming data on employment and consumer prices shed more light on how long the US Federal Reserve (Fed)might need to keep rates elevated in its battle to decisively defeat inflation.
While investors still expect rate cuts this year, unexpected economic strength has forced many to recalibrate how deeply the Fed will be able to lower borrowing costs without reigniting inflation, aligning the market’s views on easing more closely with those of the central bank.
