I find it odd that media today is pushing hard for feds to increase the current rate. Stating that warsh needs to increase rates or he will lose credibility.
But August CPI print was 3.4% and core PCE was 2.4%. both below the current rate of 3.5% - 3.75%. Core being more of an important metric that the central bank uses when making decisions.
So why is there a big push from media to increase rates even when the data shows we are still below Fed baseline? Regarding tomorrow's rate decision, I believe there will be no hike or cut as the fed is data driven.
To me what's happening is that whoever is shorting the US bonds are in bed with large media. They want to convince the regular everyday investors that the current rise in bond yields reflects what the current Fed will do. Unfortunately this will not be the case.
So why are they doing this? This all points back to Japanese bond yields increasing. I believe the spread that they borrowed YEN to invest into the US is tightening. They want the US Fed to increase the central rate before Japan does so they don't get margin called.