Who are you going to believe, me or your own eyes? The ghost of Chico Marx seems to live on among bond traders, who continue to doubt the Federal Reserve’s resolve to continue its inflation fight into 2024.
While the odds of one more quarter-point increase in the federal-funds target at the Fed’s policy meeting on May 2-3 have become a near lock, markets keep pricing in rate reductions in 2023’s second half. That’s contrary to the best guesses of Fed Chairman Jerome Powell and his colleagues that the key policy rate will end the year at 5.1%, which implies no cuts after the May hike.
Source: https://www.barrons.com/articles/the-markets-hear-but-dont-heed-the-feds-warnings-that-could-be-costly-for-them-d0ef2f6e?siteid=yhoof2&yptr=yahoo