Inflation fears surge to highest since ‘liberation day' as Fed cuts rates

Core Viewpoint - The bond market exhibits a lack of confidence in Jerome Powell's optimistic outlook for the economy and interest rates [1] Group 1: Market Sentiment - The bond market is signaling skepticism regarding the Federal Reserve's ability to maintain its current interest rate policy [1] - Investors are pricing in a higher likelihood of rate cuts in the near future, contrary to Powell's stance [1] Group 2: Economic Indicators - Recent economic data suggests a potential slowdown, which may influence the Fed's future decisions on interest rates [1] - The bond market's reaction indicates that it anticipates weaker economic growth than what Powell has projected [1]