The high-stakes balance: Interest rates, independence, and investor confidence
With inflation still sticky and job growth strong, the Fed continues to hold off on rate cuts — and markets are paying close attention to how those decisions are made.
Key takeaways from WSJ:
- Long-term Treasury yields are rising, not falling — suggesting growing concern over policy direction and stability
- The Fed’s independence remains crucial: attempts to influence monetary policy could risk investor confidence
- Higher uncertainty = higher borrowing costs as investors demand more return to hedge volatility
Bottom line: Stability in policy signals matters as much as the policy itself
