Markets Move as Federal Reserve Preaches Patience

The video discusses the Federal Reserve's plans to hike interest rates, which were earlier than market expectations. It highlights the reactions in the Treasury and high yield bond markets, noting increased volatility. The impact of plummeting oil prices on high yield bonds is also examined, with the Fed considering it a temporary issue. Janet Yellen's statements during the press conference are analyzed, emphasizing the Fed's cautious approach to economic indicators and inflation measures.

What impact did the drop in oil prices have on high yield bonds according to the discussion?

What does the Federal Reserve consider when measuring inflation, as mentioned in the text?