joining us now are kathy jones from charles schwab and markup bohne of bank of america. let's start with you, kathy. your first thoughts as it crossed? >> the fed doesn't even have much room to talk about cutting rates in the near term. the market is accurate and pushing out the possibility to the end of the year because the momentum still seems to be pretty strong in the jobs market, lifting treasury yields to steepen the yield curve. vonnie: bank of america also saying there will be any cuts this year but the market is surprising in responsibility. as we know, a lot can help -- a lot can happen in 12 months. mark: you are exactly out -- exactly right, but the justification for it is strengthening of the labor market in the consumer with sticky inflation. the expectations that you mentioned earlier are a big deal for the fed. until they see inflation that looks like it's coming downward more confidently, they will stay on hold. our economists don't think the fed will be adjusting that stance for a long time and if that's right, it means rates are going to stay more eleva

here with their market outlook, kathy jones, charles schwab, alongside jeremiah buckley, joining us now you. kathy, weigh in here on maybe what your interpretation of the bond market's message has been with this surging yields since the fed's rate cut -- actually, since september, but also since the december meeting. >> mike, i think it's a combination of factors. one is the growth expectations have ramped up because we saw growth outperform. particularly if you go back to last fall when we got those big revisions to gdp and employment data. so, we had the growth picking up more than expected. we had the shift in the fed's outlook. and then we have all this uncertainty about policy going forward, whether fiscal policy will be stimulative on top of an economy that's already running at a pretty healthy pace. that would prevent inflation from getting back down to 2%, which is the fed's target. so, you throw all that together and you get the rise in the term premium in the ten-year yield. it's gone from negative about 50 basis points. positive about ten basis points. that's accounted for mo