Investors knew they would get tough anti-inflation talk from Federal Reserve Chairman Jerome Powell last week. The speech he delivered continues to rattle debt markets anyway.
After a weekend spent pondering Mr. Powell’s Friday presentation at the Fed’s Jackson Hole conference, traders on Monday leaned further into bets that the Fed will raise rates aggressively into 2023 to bring down inflation. Treasury yields rose, market-based inflation predictions touched their lowest level all year and any signs of hope for a quick Fed pivot further faded.