Fed Unlikely to Raise Rates

The Federal Reserve is back in conclave. The Federal Open Market Committee, which sets monetary policy, convenes today for its first meeting since the bond market sell-off drastically raised long-term interest rates.

Bonds remain volatile, but the yield on the benchmark 10-year bond seems to be stabilising at about 5.1 per cent, after briefly passing 5.3 per cent. Confusion reigns over what this sell-off implied about growth, inflation, and the Fed’s intentions.