Bloomberg Surveillance · Thursday, September 17, 2026
Julian Emanuel of Evercore predicts continued market volatility following the Federal Reserve's first rate hike in three years. He suggests that while runaway upside is unlikely, the Fed's commitment to fighting inflation, signaled by Chair Warsh, creates a value opportunity in long-end bonds.
“But I think when you look at yesterday and today, what you've done is eliminate sort of the left and right tail fantasies of fixed income traders.”
“And then this morning, what we realized is, yes, in fact, all the rhetoric of the last several months about 2% being the goal is firm and it is real.”
“And by doing that and establishing that, you've taken the other side of the equation off where we were getting clients talking about 6% and 7% in the 10-year yield, not happening.”