> The bond and eurodollar markets have been signally for about a year now that the nasty thing will be a recession that will force the Fed back into accommodati

> The bond and eurodollar markets have been signally for about a year now that the nasty thing will be a recession that will force the Fed back into accommodative mode as early as this year. I've heard this quite a bit but I don't think it's true. The FED is raising rates purposefully, knowing this will cause a negative turn in the economy possibly (and likely) leading to a recession. Their goal is (perhaps indirectly but still intended) to cause a (controlled?) recession by raising interest rates. It doesn't make sense they would they seek to undo a recession that they induced. Eventually they will once inflation is back down but the FED can (and should) keep raising rates until inflation comes back down. I wouldn't be surprised to see interest rates at 6, 7 or even 8% if inflation continues at its current level or continues to rise.