The bond market is exerting growing pressure on the Federal Reserve, led by Chair Kevin Warsh, to address persistent inflation and long-term rate tensions. The Fed’s effective funds rate stands at 3.63%, while the 10-year and 30-year Treasury yields reach approximately 4.70% and 5.23% respectively, with the latter not seen since 2007. This gap between short-term and long-term rates is being interpreted as a signal for the Fed to adjust its policy. Market indicators reflect growing expectations for a pause in rate hikes at upcoming meetings.
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