Fed winning with its 'cruel-to-be-kind' strategy

The Federal Reserve's job is complicated and simple at the same time: hold the line on interest rates, even in the face of pressure, in order to keep long-term inflation expectations under control. If the recently restive bond markets are to be believed, the Fed appears to be doing a pretty good job, especially at a time when unprecedented policy uncertainty is sending near-term inflation expectations spiking. With average U.S. import tariffs set to surge to their highest level in decades and those on Chinese-made goods due to skyrocket, U.S. households' outlook for the cost of living in the year…