Policy operates with a lag, which investors seem to be ignoring.

 “The implications of tighter financial conditions, higher interest rates and balance sheet reduction are still ahead of us. They are also moving up on the premise that inflation is tamed and that real yields will fall, supporting rich valuations for stocks and credit.”

John Authers Bloomberg 2 augusti 2022

https://www.bloomberg.com/opinion/articles/2022-08-02/assume-that-the-bottom-for-us-equities-isn-t-yet-in-despite-the-july-rally

Yields have dropped in recent weeks despite the lack of any clarity that inflation is over

John Authers Bloomberg 3 augusti 2022

https://englundmacro.blogspot.com/2022/08/yields-have-dropped-in-recent-weeks.html

Junk Bond Market close to median for non-recessionary periods

Bloomberg 3 August 2022

https://www.bloomberg.com/news/articles/2022-08-03/junk-bond-market-is-signaling-the-us-will-avoid-a-recession