The outlook gap may have sparked a reversal in Treasury markets, sparking a selloff in longer-term Treasuries on Wednesday. The benchmark 10-year Treasury yield, which moves inversely to bond prices, stands at around 3.73 after touching its lowest level since mid-2023 earlier this week.

Jerome Powell, the unflappable Federal Reserve chair, would never march into a press conference, declare victory over inflation and drop the mic while giving a middle finger to his haters. That’s not his style.

Officials are hoping to prevent a gradual cooling in the labor market from turning into a deeper freeze.