Fed's Hawkish Stance Comes Under Scrutiny Amid Sliding Consumer Confidence

The US Federal Reserve's hawkish interest rate outlook has been called into question by New York Fed boss John Williams, who expressed doubts about another rate hike in October.

Despite Treasury yields climbing to their highest point since 2002, consumer confidence readings plunged to their lowest level since 2014 this month, and August job openings fell more than forecast.

Williams suggested that further tightening may be necessary by year-end but that the Fed may need time to gather more data before pulling the trigger again.

The fact that bonds didn't react significantly to these releases may indicate a worrying sign about market dynamics, or it could be partly related to portfolio rebalancing at quarter-end.