Bond Traders Are Heeding Powell's Pledge to Stay on Volcker Path
US yield curve may remain inverted for unprecedented duration, but stocks and bonds acting as hedges for each other tempers bleak outlook.
A trader works on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Investors are conceding that the Federal Reserve is now intensely focused on fighting inflation and less concerned about higher interest rates breaking the US economy.
That suggests the extraordinary bond market volatility of the past 15 months is set to persist, as 80% respondents to the midyear Markets Live Pulse survey predict the US yield curve will remain inverted into 2024.