Markets Are Prepared for a Hawkish Fed: Barclays' Pond

The video discusses the dynamics of nominal and real yields, emphasizing the importance of real yields in the current economic climate. It highlights the market's initial skepticism towards the Fed's rate hikes and the subsequent acceptance of its hawkish stance post-Jackson Hole. The focus shifts to short-term yields, noting significant movements and market adaptation. The impact on risk assets is examined, with higher yields not supported by strong growth leading to market caution. The Fed's strategy to control inflation and its effects on the economy are analyzed, with a focus on the delicate balance the market must maintain in response to the Fed's actions.

What does the term 'hawkish' refer to in the context of the Federal Reserve's policies?

In what way does the text suggest that the market has prepared for a hawkish Fed?