There’s been premature talk in financial markets about a “Fed pivot”.
That the U.S. central bank is already indicating it will stop its interest rate increases sooner than later.
That’s news to the yield curve of two and 10-year U.S. Treasuries, which remains inverted, implying more rate hikes and slowing economic growth.
But, at some point, the Fed will end its battle to reel in inflation and stop raising rates.
The question is when.
J.J. Johnston has some thoughts on the matter from our live show.