The Bond Market Is the One Behind the Curve Now

(Bloomberg Opinion) — The bond market needs to take the Federal Reserve at its word this time. After pushing the central bank to accept that the current high rate of inflation was not transitory, bond traders have turned relatively sanguine on how much the Fed is likely to tighten monetary policy now that it has acknowledged it needs to act. So much so, that Fed Chair Jerome Powell had to twice make clear in less than a week that t…