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The bond market is doing the Fed’s job, and that could be good news for stocks, says Morgan Stanley strategist

Katherine Langford
Editor-in-Chief · Monday, October 12, 2026 at 9:23 AM · 1 min read
The bond market is doing the Fed’s job, and that could be good news for stocks, says Morgan Stanley strategist — MarketWatch, Orinda Business news
Image: MarketWatch

A stronger dollar, higher bond market yields and elevated gas prices are already tightening financial conditions in the U.S. to the point that Kevin Warsh may not even need to hike rates.

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