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Bond market is pricing too many Fed hikes, former Dallas Fed chief says

Reported · Written up by our desk · Central Banks

The bond market appears to be pricing in more Federal Reserve rate hikes than is warranted, according to a former Dallas Fed official, MarketWatch reports.

The former central bank chief said the market’s expectations have become overly aggressive, implying a mismatch between rate projections in bond prices and the Fed’s likely path.

MarketWatch’s account frames the issue as one of interest-rate expectations, with bond-market pricing driving how investors think about the Fed’s next moves.

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