Jeffrey Rosenberg warns against overplaying the initial yield curve flattening reaction. He argues the real hawkish signal may be about the balance sheet, not just rates. Reducing the balance sheet would remove the term premium compression that has benefited bonds, potentially leading to a different market reaction than the initial flattening suggests.

Jim Bianco welcomes the Fed's communication changes, including shorter statements and potential elimination of the dot plot. He sees the yield curve flattening as the path forward, with the Fed joining the ECB and BOJ in a global tightening cycle. He notes the Fed's new independence and the market's appropriate reaction.

Kate Moore sees the Fed's recommitment to 2% inflation as a clear hawkish signal. She remains underweight duration, preferring equities over credit, and warns that rate-sensitive small caps will suffer as the rate trajectory stays flat or higher. She will watch for follow-through action, not just jawboning.