The MOVE Index: Why It’s Triggering Fed Action and How It Could Impact the Economy

The Federal Reserve might be forced to act sooner than expected on interest rates, driven not by inflation or employment but by a dramatic surge in bond market volatility. The MOVE Index has reached record highs, surpassing 137 points, due to concerns about economic instability. This move is unprecedented and raises the question: Why is it so significant? The answer lies within the MOVE Index’s function as a measure of the U.S. Treasury bond market’s volatility. If this index crosses 140, it triggers a decisive action from the Fed.