When the Bond Market Speaks, the Fed Listens (Eventually)

Fed officials are floating cuts. The 2-year yield already priced them in. Now the lag is catching up.

The Fed doesn’t set the tone — it reacts to it. Always has. Always will.

Waller’s comment this week was clear:

“A serious drop in the job market could prompt more cuts, sooner.”

Translation? The Fed is laying the groundwork. And the bond market already knows it.