Post #15408

Important reminder: The Federal Reserve directly controls the short end of the yield curve (via the federal funds rate and its policy tools), but the long end — particularly 10-year and 30-year Treasury yields — is ultimately determined by the bond market itself, reflecting investors’ collective expectations about growth, inflation, and future Fed policy. If the bond vigilantes disagree sharply with what the fed chooses to do with the fed funds rate, long term bond yields (the ones that matter most for mortgages) may remain elevated regardless The next fed chair will inherit slightly elevated inflation, a slow labor market, and steep expectations from the white house. Let's see what happens!