Bond Sell-Off Sent Warning On Fed’s Credibility

“A top Federal Reserve official has warned this week’s sell-off in U.S. Treasuries is a signal that the central bank must earn its ‘credibility’ on fighting inflation by backing up its rhetoric with interest rate rises,” the Financial Times reports.

Said St. Louis Fed President Alberto Musalem: “Mr Market spoke this week, and I took a signal from it. The signal emphasized to me that we need to continue to earn our credibility every day with both effective communications and actions as needed.”