Bloomberg Surveillance · Thursday, September 17, 2026
The Federal Reserve has seemingly restored market confidence by demonstrating a serious commitment to its two percent inflation target, which has led to the elimination of concerns about yields reaching six to seven percent. This renewed credibility has pushed down 10-year Treasury yields and contributed to a rally in stock prices.
“And again, for us, the most important feed-through for the last number of months has been the 10-year yield. Oil pressuring the 10-year yield. 10-year yield pressuring the ability for hyperscalers to issue debt. You've sort of got the release valve here. That's why stocks are doing better. That's why long-end yields are lower.”
“It just, you know, fear that they wouldn't, you know, really address the concept of the two percent inflation target. And we're here and we're and he's serious.”