The outlook for inflation in the bond market is a key factor for Fed policymakers to decide on interest rate policies, and the current signals are worrying. This is the opinion of Piper Sandler's head of global asset allocation and former Federal Reserve economist Benson Durham. He pointed out that his adjusted long-term inflation expectations have risen in recent months, exceeding the Federal Reserve's 2% target, which suggests that traders expect inflationary pressure to continue in the future. Durham said that the risk facing the central bank is that these expectations will cause actual inflation, so if the upward trend continues, it may stimulate the Federal Reserve to raise interest rates in response.