The US bond market has mixed views on the state of the economy, with a cautious mood ahead of the FOMC meeting.

September 17, 2024, 7:12 PM GMT+9 (excerpt)

The Federal Reserve (Fed) is expected to announce the first rate cut in four and a half years at this week's FOMC meeting. However, the bond market has differing views on the future of the US economy and a cautious mood is prevailing.
Proponents of a soft landing point out that the recent weak domestic indicators do not necessarily indicate a sharp economic downturn or recession. On the other hand, proponents of a hard landing see concerning trends in the labor market and believe there is a risk of a severe recession, pushing the Fed to be forced to aggressively cut rates.