Wall Street veteran Yardeni urges the Federal Reserve to abandon its easing stance or risk losing control over interest rates

Golden Finance reports that on May 18, according to Yardeni Research, the Federal Reserve needs to keep pace with the bond market; otherwise, as investors become increasingly concerned about inflation, the Fed may lose control over borrowing costs.
Ed Yardeni, the company’s president and chief investment strategist, stated that given the current market environment is “no longer” suitable for accommodative policies, the Federal Reserve should cancel its easing bias at the June meeting.
“If the Fed does not remove the accommodation, investors will believe that the central bank’s response to inflation is lagging behind the inflation curve, which will demand a higher inflation risk premium,” Yardeni wrote in a report.
“It is expected that the Federal Reserve will keep interest rates unchanged at the June meeting and shift towards a tightening policy stance.”