BofA's Cabana Says Rates Curve Is Challenging the Market

Mark Cabana from Bank of America discusses the Fed's approach to interest rates, highlighting its humility and nimbleness in response to economic data. The rates market is pricing in multiple rate hikes, challenging the Fed to respond. If financial conditions allow, the Fed may follow the market's lead, potentially resulting in six or seven hikes this year. The discussion also touches on the possibility of a 50 basis point hike in March, depending on market conditions.

What does the speaker suggest clients do regarding the front end of the rates curve?

What is the implication of the front end of the rates curve flattening?