Bonds Poised to Establish a Range, JPM's Michele Says

The video discusses the recent volatility in the bond market, highlighting a seven-month sell-off and the potential establishment of a trading range. It examines economic indicators, suggesting a soft landing with moderated inflation and full employment. The discussion also covers potential risks of reinflation and unexpected market strength, emphasizing the need for the Fed to maintain higher rates. The Fed's strategy to manage financial conditions and the impact of economic slowdown signals, such as labor market pressures, are also explored.

What factors contribute to the volatility seen in the bond market over the past seven months?

How does the current inflation rate compare to the core PCE rates mentioned?

What are the implications of a potential need to keep interest rates higher for longer?

What signals indicate a slowdown in the labor market according to the discussion?

Discuss the challenges faced by the Fed in engineering a soft landing for the economy.