Federal Reserve officials next week are likely to paint a robust picture on the economy while simultaneously not even hinting at policy changes ahead. Investors increasingly have come to trust central bankers when they say that even with the economy running at its hottest pace in nearly 40 years, they won’t start taking away policy accommodation until it’s clear the recovery is on solid ground. … The Fed has kept short-term borrowing rates near zero since early in the Covid-19 pandemic … Financial markets, though, have been leery that with economic data getting stronger by the day and inflationary pressures starting to build that the Fed could find itself pressured to start easing off the accelerator.
Source: CNBC – Bonds
