Fed Vice Chair Brainard also spoke at an event in Chicago – providing a fairly dovish message. This fits with current market expectations of slowing Fed rate hikes. The risk is that inflation expectations are more stubborn than currently viewed by the Fed and the market – which could need a round of aggressive rate hikes. For many issuers, this risk may be asymmetric – and locking in good rates now might be a smart move.

Brainard voiced concerns about growth – talking about inflation having declined recently, pointing to a weaker industrial production print, talking about monetary policy transmission lags, and a wage-price spiral not seeming to currently exist. She also mentioned that longer term inflation expectations are well anchored.

Brainard did say that “Inflation is high, and it will take time and resolve to get it back down to 2 percent. We are determined to stay the course” – but the bulk of the speech pointed to what the Fed has done so far succeeding in slowing the economy and bringing down inflation.