One area that has been raising alarm bells is the market's growing expectation that inflation will go lower and lower, and stay there for a long time.
The bond market's fear about Fed policy are showing up in a spread that indicates falling expectations for inflation, which is also a concern at the Fed as it could signal low growth or even a recession.
In the bond market, that means Fed policy is too tight and the Fed needs to cut rates to generate inflation.As the rest of the world slows, the U.S. economy has shown weakness but no big cracks. But one area that has been raising alarms, and one that can sway the Fed, is the market's expectation that inflation will go lower and stay there for a very long time.
"It's one of my arguments why they should be cutting ... Inflation expectations are signaling the Fed is going to miss its mandate over a long time," said Briggs.
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