The yield on the long bond recently reached 5.18%, its highest level since July 2007.

John Ryding predicts that the Federal Reserve will need to take more action than suggested in its last Summary of Economic Projections (SEP) and does not foresee a rate cut happening in 2026.

John Ryding asserts that the current inflation is not a wage-driven event, noting that wages are lagging and productivity is strong.

Corporations are experiencing wider profit margins during the current inflationary period.

Disruptions in the Strait of Hormuz, which accounts for one-fifth of the world's oil supply, have resulted in approximately 13% of the world's daily oil consumption not being moved.

John Ryding believes a Federal Reserve rate increase is more likely than a rate cut in the near term due to inflationary pressures from oil shortages.

The Federal Reserve has cut interest rates by 175 basis points at the front end of the curve over the last year and a half.