What the bond market is trying to tell us

This coming week, we’ll get the latest reads on job openings, productivity, the unemployment rate, and more.

To set the economic scene, “Marketplace” host Kai Ryssdal spoke with Nicole Cervi, an economist at Wells Fargo. They started by looking at the bond market and how traders are reacting to the Federal Reserve press conference last week.

“I think what’s going on is you saw the market pricing out those expectations for the Fed to hike by the end of the year, and then pricing in basically higher inflation over a long-time horizon,” Cervi said. “So, that is basically the market telling us that they are not expecting the Fed to deliver on their inflation mandate, i.e. getting inflation back down to 2% anytime soon.”

Click the audio player above to hear the full conversation.