Fed Chair Jerome Powell on Wednesday leaned even more hawkish than he has been in recent months. He said the Fed will have to keep interest rates higher for longer to win the war on inflation. Powell said recent stronger U.S. economic data likely rolled back the softening seen on inflation the past few months. The U.S. dollar index rallied to a three-month high on Powell’s remarks. Meantime, the yield on the 10-year Treasury is hovering near 4%. The 2-year note yield last week pushed above 5% for the first time since 2007. The 2-year – 10-year note spread is presently the widest in decades. Historically, an inverted yield curve (shorter-term yields higher than longer-term) has portended tough U.S. economic times ahead. Stay tuned! Jim Wyckoff