Is Inflation Becoming Entrenched in the Economic Fabric? Congress has long tasked the Federal Reserve with pursuing two core objectives: price stability and maximum employment, commonly known as the Fed's dual mandate. In 2012, the Fed officially adopted a 2% annual...

Rising Mortgage Rates: A Consequence of Higher Treasury Yields Mortgage rates have moved sharply higher in recent months, creating a noticeable headwind for homebuyers and homeowners looking to refinance. While various factors may influence borrowing costs, Treasury...

Yields Jump: Reading the Bond Market's Signals What dominates the headlines today may be forgotten tomorrow, and what could move stocks tomorrow may barely register with investors today. But for now, the market’s focus is on interest rates. Figure 1 illustrates the...

Rising Bond Yields and the Stock Market “Bond Selloff Deepens After 30-Year Yield Hits Highest Level Since 2004,” declared Bloomberg News last week. CNBC echoed the sentiment with “10-Year Treasury Yield Rockets to 19-Year High.” What’s driving the recent rise in...

The Fed Hikes Rates: What Investors Should Know In his opening remarks in a speech last month at the Federal Reserve Bank of Kansas City’s Economic Symposium, Fed Chief Kevin Warsh said, “(Event) planners have some recreation options lined up for later today. And I'd...

A Hotter August CPI Builds Rate Hike Momentum First, let’s clarify that any attempt to predict the Federal Reserve's actions this week is, at best, an educated guess. Fed Chair Kevin Warsh has struck a hawkish tone, and the odds of a quarter-point increase in the fed...