The Future of the Bond Market

If the Fed is willing to tolerate higher levels of inflation that could be good for equities. A pause doesn't signal that they're tolerating high levels of inflation it may indicate that they think that the long and variable lag will eventually do the job. If there is actually a structural change that inflation is more persistent then we're going to have to see things happen at the long end of the bond market. I think that's what's been the most that's going to be the biggest thing to watch in the next few months.