Post #15647

U.S. Yields, Fed Path Still Unclear U.S. 10-year yields eased to around 4.17%, pulling back from session highs as inflation data kept the door open for Fed cuts later this year. Core inflation failed to re-accelerate in December, while headline CPI held at 2.7%, easing immediate pressure on the Fed. That said, firmer core services inflation continues to give hawkish FOMC members ammunition, especially with the labor market remaining stable in a low-hiring, low-firing regime. Markets remain split between two or three rate cuts this year, more than the Fed currently projects. Also, political pressure on Chair Powell and uncertainty around future FOMC leadership are helping keep the Treasury curve steep. - Alan