Recession Watch: Bonds Don't Trust the Fed

Back to "higher for longer until something breaks"

This first thing isn’t supposed to happen: When the Federal Reserve cuts short-term interest rates, long-term rates generally fall in tandem. But since the Fed’s “shock and awe” 50-basis point cut in September, bond yields have spiked:

Bond traders appear to doubt the Fed’s ability to lower rates and hold inflation in check. That’s bad in the long run …