Kansas City Fed

The bond market helps solve the Fed’s interest rate dilemma

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CAMBRIDGE, MASSACHUSETTS - MARCH 30: Harvard University Professor David Laibson moderates a discussion with Federal Reserve Chairman Jerome Powell during a Principles of Economics class at Harvard University on March 30, 2026 in Cambridge, Massachusetts. This will be one of Powell's last scheduled appointments before his term as chairman ends on May 15. (Photo by Sophie Park/Getty Images)

The bond market may be doing the Fed’s work for it. The central bank wants to keep rates steady in the face of the Iran conflict, which has sent oil prices up more than 50% and raised expectations of inflation in the next few months. Meanwhile, the markets are already overpriced. In the first month … Read more

The bond market helps solve the Fed’s interest rate dilemma

by
CAMBRIDGE, MASSACHUSETTS - MARCH 30: Harvard University Professor David Laibson moderates a discussion with Federal Reserve Chairman Jerome Powell during a Principles of Economics class at Harvard University on March 30, 2026 in Cambridge, Massachusetts. This will be one of Powell's last scheduled appointments before his term as chairman ends on May 15. (Photo by Sophie Park/Getty Images)

The bond market may be doing the Fed’s work for it. The central bank wants to keep rates steady in the face of the Iran conflict, which has sent oil prices up more than 50% and raised expectations of inflation in the next few months. Meanwhile, the markets are already overpriced. In the first month … Read more