Volatility in financial markets has increased due to speculation about the US Federal Reserve's next moves on interest rates. According to economist Mohamed El-Erian, uncertainty about whether the Fed will cut rates is creating nervousness among investors. This situation has led to large sales in the US Treasury bond market, especially after a positive employment report that caused traders to rule out further substantial rate cuts. As a result, bond yields have risen above 4%.
The current speculation reflects how investors adjust their expectations in line with changes in economic policies, creating an environment of uncertainty. Although the Federal Reserve usually tries to calm markets with clear information about its decisions, since 2021 the communication has generated more volatility than expected, according to El-Erian.
