FOX Business contributor and The Wall Street Journal chief economics correspondent Jon Hilsenrath reacted to the June personal income and spending reports on "Mornings with Maria" Friday. Hilsenrath said the data shows the economy is still "on fire" and that bond markets aren't concerned about inflation.
JON HILSENRATH: Overall, this is a pretty good report. Actually, the spending numbers are solid. We were starting to get a little worried again this summer, it's before the Delta variant, but it was starting to creep in. And it looks like people are still out there spending a lot of money.
In terms of the inflation numbers, it's a little softer than expected… if you look at what's going on in Treasury markets, that's like the temperature gauge for how worried the investing public is about inflation. It's like literally putting a thermometer in your mouth and taking your temperature. And the bond market is not worried about inflation now.
In fact, yields on 10-year Treasury notes have fallen by almost a half percentage point this year to one and a quarter percent. You know, boy, it's time to start thinking about refinancing a mortgage again or taking out a mortgage. You know, the bond market is just is not that worried about inflation.
It buys the Fed's narrative that the inflation we're seeing right now is temporary. So, I mean, this could all change in the next few months. But right now, this is a… report that says the economy is still pretty much on fire.
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