Dan Deming's Bond Outlook

Tuesday’s stock market reacted harshly to hawkish comments out of Federal Reserve Chairman Jerome Powell. Dan Deming says the significant change of tone is putting pressure on financial markets already weighed down by inflation and Omicron variant concerns. The potential for future rate hikes in 2022 is holding the yield curve steady, says Deming, who notes the 30-year treasury index is nearing January levels. Looking ahead, Deming is watching the government debt ceiling on top of COVID-19 factors that are impacting economic activity.