The Fed Is a Slave to the Rates Market

The fed only gave the market a day and a half to digest the news that it was going to hike 75 basis points. It leaked a story through, leaked the hike through the wall street journal,. The market adjusted really quickly, just in time for the wed Wednesday meeting. They're always trying to lead the market. But then at some point we will see the two year yield come crashing back down. That's the market telling the fed it has to stop hiking rates. And twos will come crashing down toward where the fed funds currently is at or below it. Then eventually the fed, within days or weeks, will have to say, we're pausing our hiking cycle.