Stabilizing the bond market is now Scott Bessent's job: Ed Yardeni

• The market is pricing in a 66% probability of a 25 bps Fed rate hike in September.
• Yardeni agrees with a September rate hike, stating the Fed should have acted in July to mitigate commotion.
• He expects the stock market to 'get over' the rate hike 'pretty quickly'.
• Yardeni suggests Treasury Secretary Scott Bessent is now responsible for stabilizing the bond market.
• The Fed has missed its 2% inflation target for over five years, with the PCE deflator running over 3%.

Ed Yardeni anticipates a likely 25 bps Fed rate hike in September, arguing the Fed should have acted sooner to address persistent inflation. He believes the stock market will quickly absorb this move and highlights Treasury Secretary Scott Bessent's role in stabilizing bond markets, which he sees as crucial given the Fed's missed inflation targets.