Investors knew they would get tough anti-inflation talk from Federal Reserve Chairman Jerome Powell last week. The speech he delivered continues to rattle debt markets anyway.
After a weekend spent pondering Mr. Powell’s Friday presentation at the Fed’s Jackson Hole conference, traders this week have leaned further into bets that the Fed will raise rates aggressively into 2023 to bring down inflation. Treasury yields have risen, market-based inflation predictions have touched their lowest levels all year and any signs of hope for a quick Fed pivot have further faded.
