BILS - The Fed Is In A Cage Match With The Bond Market And There Is No Escape

• Despite the short-term pullback in yields, the long-term trend for bond yields remains up and the stock market, although weakened, is still not completely in sell territory, although that could change in a hurry.
• The Fed is either going to have to step up its bond buying to lower rates, or they will be forced to raise interest rates in order to slow the stealth inflationary pressures that are apparent in the real world, as in grocery and gasoline prices.
• Unfortunately, unless something dramatic happens, such as an overnight and massive recession materializing, it's a no-win situation for the Fed and for the markets.

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