WS #15093
Fed Governor Barr’s speech confirmed that the central bank sees no timely path to the 2% inflation target without further policy adjustments. This hawkish pivot has sent 30-year Treasury yields soaring to 24-year highs, compressing equity valuations and triggering a massive flight to safety. Gold has hit record highs as investors hedge against both sticky inflation and the rising cost of capital, while consumer confidence has plunged to multi-year lows, reflecting growing anxiety about the economic trajectory.
Fed Hawkishness and Bond Rout
Fed Governor Barr’s speech confirmed that the central bank sees no timely path to the 2% inflation target without further policy adjustments. This hawkish pivot has sent 30-year Treasury yields soaring to 24-year highs, compressing equity valuations and triggering a massive flight to safety. Gold has hit record highs as investors hedge against both sticky inflation and the rising cost of capital, while consumer confidence has plunged to multi-year lows, reflecting growing anxiety about the economic trajectory.