Investors contradict Fed officials on US interest rate reversal

Financial Times/Kate Duguid and Colby Smith/1-21-2023

“The divergence reflects beliefs about future inflation, which has cooled in recent months but remains high by historical standards. ‘There is a very clear disconnect and it is a disconnect about inflation, said Priya Misra, head of rates strategy at TD Securities.

USAGOLD note: The tug of war between Wall Street and the Fed proceeds…… The “disconnect” described could be in force for some time to come.