/FED: FTN Financial's Jim Vogel said, "If...>

US TSYS: /FED: FTN Financial's Jim Vogel said, "If the Fed comes out hawkish

Wednesday afternoon, will that allow inflation expectations to pull back from

the run that has pushed up longer intermediates? One reason 10-yr UST have

gotten cheaper despite weakness in August consumption reports, is the summer

idea the Fed was beginning to question the need to raise rates this year since

inflation is not responding as expected to tighter labor markets." 

- But he adds that "yet, this week's analysis running up to the FOMC presumes

signals a December hike is still easily within reach. If so, that implies

vigilance on price increases that carries into next year. In that case,

inflation concerns should be stable rather than escalating."