Bond traders’ go-to bet for 2022 is on the line at Jackson Hole

Whether it remains a winner becoming even more deeply inverted depends not just on how many more rate hikes there will be, but also on the economic consequences and the Fed’s tolerance for pain. Powell will open the Wyoming confab with remarks on Friday at 10 a.m. New York time. And speculation is mounting that he’ll strike a hawkish tone that leans against market expectations for rate cuts in 2023 in response to an economic slowdown.