Bloomberg Surveillance TV: September 28th, 2026

Rising bond yields and geopolitical instability in the Middle East are reshaping market expectations and Federal Reserve policy. Bob Michele of JP Morgan Asset Management argues that current yields above 5% represent a strategic buying opportunity, dismissing recession fears while anticipating a stabilization in inflation around the mid-twos. Lindsey Piegza of Stifel emphasizes that while the economy remains resilient, the Federal Reserve must maintain a restrictive stance to combat ingrained inflation, likely necessitating a higher unemployment rate. Meanwhile, Henrietta Treyz of Veda Partners highlights how energy price volatility and the ongoing conflict in the Strait of Hormuz create significant political pressure ahead of the midterms, forcing a delicate balance between domestic energy needs and foreign policy. These factors collectively suggest a period of economic adjustment where higher rates and energy costs act as persistent headwinds to growth.