The bond market is closely watching the Federal Reserve’s actions, with expectations shifting from multiple rate cuts to a more cautious approach. Fed Chair Jay Powell emphasized the need for more data on inflation, while reassuring that growth remains strong and stagflation is not a major concern. The market is currently pricing in two rate cuts later in the year, with potential changes in the Fed’s projections at the next meeting in June. Despite some recent economic data showing a slight slowdown, the overall outlook for steady growth and gradual inflation remains positive. Both the bond and stock markets seem satisfied with the Fed’s current stance, but any unexpected shifts in data could lead to quick changes in market sentiment.