next Fed meeting would contain inflation

"Loose lips sink ships," if this was the Fed's motto rates would probably not reacted the way they did. After several Fed Governors spoke about the inflation front last week rates reacted less than calmly. So are we in store for more of the same?

Last week, several Fed Governors spoke out about the inflationary pressures that face the economy and the lack of the Fed's action to date. Some even suggested that increasing rates at the next Fed meeting would contain inflation and bring crude oil prices back down to under $100 per barrel, these comments caused rates to react wildly.

Although the week ahead has several reports scheduled for release the most impactful is Thursday's Philadelphia Fed index. However, the market will likely be more focused on the continued comments of the Fed Governors and there willingness to criticize the lack of action by the Fed to stem inflation.

The bottom line: Expect rates to continue to be volatile as long as the Fed dissenters continue to flat their lips.