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Is the Fed Trying to Control the Market?
Mester: It would be inappropriate to cry victory too early, and risk letting high inflation become entrenched. This move in the bond market was historic in the first half this year. Bonds absolutely got smoked. There have been few times in history absent a credit crisis where you've had this kind of turmoil in the Bond market. And I think it's going to be Jerome Powell's worst nightmare if he still has CPA,. But at the same time, you've got this issue of higher SPY,you've got higher asset prices.