Bonds Signaling a Painful Downturn: Invesco's Waldner

The transcript discusses Powell's commitment to fighting inflation through 2023, with potential relief in 2024. The bond market's reaction suggests significant economic tightening, as evidenced by the inversion of the yield curve. The analysis highlights the unchanged 30-year bond and the rise in the 2-year bond, indicating market expectations of aggressive tightening and its unclear impact on the economy and risky assets.

What does the speaker mean by 'do whatever it takes' in the context of economic policy?

What are the potential implications for risky assets due to the expected tightening?