Last weekend Fed Chair Jay Powell gave a rare interview with TV program ’60 Minutes’. Not only did Powell tell people to expect rates to remain higher for longer – he also sent less than subtle warnings to Congress. I quote: “It’s probably time, or past time, to get back to an adult conversation among elected officials about getting the federal government back on a sustainable fiscal path”. Amen. But good luck with that Jay. When asked if this was an urgent problem – Powell said “You could say that it was urgent, yes.” In short, keep a close eye on bond yields – especially the long-end. The market wants them to head lower – much lower – however fiscal recklessness could prove otherwise.