Alexandra Scaggs

Wall Street strategists say the central bank can tame prices without massive job losses by managing inflation expectations via measured rate hikes or by engineering a market correction.

The central bank chief told a House panel that policy makers are intent on fighting inflation by tightening monetary policy as data and geopolitical events dictate.

Both long-dated Treasuries and stocks are down sharply so far this year. That’s unusual in that they generally move in opposite directions.

Mary Callahan Erdoes is CEO of J.P. Morgan Asset and Wealth Management

Core bond funds, meant to protect against declines in stocks, have lost more than 6% this year.

Fed governor Lael Brainard took a hawkish tone in a speech, and markets took notice.

One type of investment product aimed at individual investors could be exacerbating the moves in the yield curve, says market veteran Harley Bassman.

Markets today are echoing 2018, the last time the central bank was raising interest rates and tightening monetary policy. The economic and geopolitical backdrop this time is different, but watch out for stress in low-rated companies.

Some on Wall Street think Wednesday’s CPI report puts a 75-basis-point interest-rate increase back on the table.

With 10-year yields comparable to Treasuries, municipal bonds could be poised for a rebound if investors’ fund selling reverses.