The Fed Shows Unusually Determined Resolve in This Situation

A lot of people believe the Fed, Jay Powell has said all these policymakers, not just the Fed, the ECB too. But there is a material risk that the Fed is just going to stick its head in the sand and keep short term rates as high until it becomes absolutely un-, they can no longer hold it to that policy. And so I think that's what the markets are really looking at is we think the economic fundamentals demand lower rates, but we recognize the Fed can ignore those fundamentals for a very, very long time.