The Fed Is in Control

(1) Before and after the pandemic. (2) Is the Fed pegging the bond yield? (3) Inflationary expectations showing up in bond’s yield spread with TIPS, not in the bond yield itself. (4) Bond yield hasn’t budged despite strength in economic surprise index and M-PMI. (5) Inflationary expectations rising with copper price. (6) Is the Phillips Curve flat or dead? Yes, to both! (7) Employment gets more weight in dual mandate. (8) The unemployment rate isn’t the only labor market variable that matters. (9) De facto yield curve control is here. (10) No rush to raise rates anytime soon.