Bond selloff, day 4
Three key passages from the Sept. 20 Fed meeting minutes:
1) “Recent rates of core inflation, if they persisted, were seen as higher than consistent with price stability, and participants underscored the importance of ensuring a moderation in inflation.”
2) “Members continued to see a substantial risk that inflation would not decline as anticipated by the committee.”
3) “Several participants worried that inflation expectations could rise and the Federal Reserve’s willingness to carry through on its intention to seek price stability could be called into question.”
I have pointed out for a while now that a HUGE amount of hot money has poured into the market, betting on a bond price rise. That money seems to be running out equally fast now.