FHN Financial Economic Weekly: Friday, August 7, 2026

Ed Yardeni coined the term “bond vigilantes” in 1983, in a piece in which he argued that if the Fed would not fight inflation, the bond market would. The metaphor still resonates 43 years later as, in the first seven months of 2026, the Fed maintained stable interest rates while market rates rose by 30-60 basis points. Yet, it is important to remember it is just a metaphor.

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