Fed Down or Market Up for rates

Fed Down or Market Up for rates

This chart from Bloomberg shows that there is a very serious market reaction to the decline in CPI, the underlying concerns about a recession, and the Fed’s rate hikes. The market is trying to get interest rates lower – at a much faster pace than the Fed would like.

I think that the FED will see CPI which means that rates will not increase and damage the economy as see above by the difference in FED rates and Market rates.  The rates will have to become rational in light of the issues with the economy and the election looming.