The Prudential Fixed Income Team (PGIM) said that the Federal Reserve has set multiple thresholds for its continued tightening actions: the threshold for slowing down the pace of interest rate increases is relatively low, which will be reached as soon as December; the threshold for completely suspending interest rate increases is higher. Much more. Ultimately, the Fed's planned endpoint will be higher than expected and rates will remain high for longer, but it will ultimately reach its target more slowly. Additionally, the interest rate outlook is likely to be more dovish. While the Fed is clearly leaning toward further significant rate hikes this cycle, markets are already pricing in more than 100 basis points of rate increases over the next two quarters. This large cushion could at least give bond markets a breathing space to wait for the real federal funds rate to catch up to relatively high market pricing.