How surprising was hawkish tilt in Fed minutes?
Vonnie Quinn
Ven Ram
Sharp tilt; Fed pivoting from labor concerns to sticky inflation; officials may even consider rate hikes.
Why shift from labor worry to inflation worry?
Vonnie Quinn
Ven Ram
Fed penciled 2.3% growth, above trend; biggest issue is sticky inflation; if elevated prints continue, no room to cut.
What's yield curve reaction?
Vonnie Quinn
Ven Ram
Recent long-end rally untenable; if Fed cuts despite sticky inflation, long yields will rise as investors demand inflation premium.