The Federal Reserve is expected to keep its target interest rate unchanged in today’s policy announcement, but the stable outlook belies the unsettled inflation picture that’s keeping the bond market on edge.
The bond market is struggling to price in the twin threats of higher inflation and slower economic growth - the dual effects of the Middle East turmoil that has elevated energy costs.
U.S. Treasury yields have increased recently but have pulled back from the peak that followed the start of the war on Feb. 28.
MCCAIG/iStock via Getty Images
The Federal Reserve is expected to keep its target interest rate unchanged in today’s policy announcement, but the stable outlook belies the unsettled inflation picture that’s keeping the bond market on edge.
