In this chart, the pink line shows how the 10-year treasury moved in the three days before, and after Fed interest rate announcements.  The light blue line – which moves sharply in the opposite direction – is the 10-year treasury at all other times.

John Mauldin notes:

The Fed is slowly losing control of the narrative. They lost it when they allowed inflation to get out of control and the market started asking for extra term premium. Inflation is not under control and that extra term premium is still there.

Why is that? Because the Fed doesn’t control the long term market interest rate. The market controls that, not the wizard behind the curtain, Jerome Powell.

Beware: Another Fed rate cut may have the opposite effect that Washington and the White House want.