The members of the FOMC ("Federal Open Mouth Committee") continue to sink prices in the fixed-income markets. The 2-year Treasury yield soared to 4.62% today, while the 10-year Treasury yield jumped to 4.24% (chart). The S&P 500 rallied through mid-morning, but then fell the rest of the day to 3665.78, just below the June 16 low.
Triggering today's selloff in the bond and stock markets was Philadelphia Federal Reserve President Patrick Harker. In a speech in New Jersey, he repeated the Fed's party line saying that the Fed will continue to raise rates "for a while" and that won't stop until "sometime next year" and then "we should hold at a restrictive rate for a while to let monetary policy do its work."