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Bond-market rebound faces pressure as inflation-fight credibility questioned
Investors pointed to the need for a clear signal from the Fed after a Wednesday selloff, arguing credibility on inflation policy is being tested.
WSJ Markets reports that investors are warning the Fed must demonstrate a firm commitment to fighting inflation following a Wednesday selloff in bond markets.
The concern is that any renewed expectations about the direction of policy could move pricing in rates, leaving bond investors focused on whether policymakers can reinforce credibility on inflation.
The outlet frames the debate as a test of confidence in the inflation-fighting stance, rather than a purely short-term reaction to the selloff.