The catalyst
Fed's Hammack Says Treasury Rates Right Now Are "Modest" By Historic Standards; If The Economy Were To Return To A 3% Home Mortgage It Would Likely Mean Something Had Gone Wrong In The Economy; The Neutral Rate Is Likely Higher But It Is Ha
The thesis
Fed policymaker Beth Hammack said Treasury rates remain modest by historical standards, warned of early signs of rising inflation expectations, and said the economy may need to cool at the margins. The comments are a direct macro catalyst for broad-market rate sensitivity.