The market is starting to believe that another hawk has appeared.
After raising the target range of the Federal Funds Rate at each of the 10 FOMC Meetings,
We have made progress.
In prepared remarks for an address to bankers at San Antonio, Dallas Federal Reserve president Lorie Logan stated:
In the coming weeks, data could show that skipping a meeting is a good idea. We are not there yet, but we will be in the future.
We haven't made the progress that we should. It's still a long road to 2% inflation.
Logan referred to the Fed’s long-term goal.
Also, Fed Governor Philip Jefferson reiterated Logan's remarks:
"Inflation has reached an unacceptably high level, and we are not making enough progress to reduce it,"
"Outside energy and food, progress on inflation is a challenge...
"A year is not long enough for the demand to feel all of the effects of higher interest rates."
There is no sign of any cuts, but there could be more hikes.
Futures hit the lowest levels of the day and extended losses following the initial 'good data'...
Treasury yields are spiking, but the short-end is underperforming.
The 2Y yield is at a critical resistance level...
Expectations for Fed rate increases continued to trend hawkishly.
The market was not as gullible as they wanted us to be.