The bond market isn't signaling a need for lower interest rates, says Ed Yardeni

Summary

Ed Yardeni, president of Yardeni Research, joins Squawk Box to discuss his bullish S&P 500 target, the earnings-led market, and risks from the Fed, tariffs, and bond vigilantes. He argues the bond market does not signal a need for lower rates, sees a possible stock-market melt-up if the Fed cuts too much under political pressure, and expects banks to lead earnings despite a proposed credit-card rate cap. He also notes gold's record high as a safe-haven reaction to the Powell probe.

• Ed Yardeni reiterates a year-end S&P 500 target near 7,700, about 10% above current levels.
• He calls the market earnings-led and expects a strong fourth-quarter reporting season with record profits.
• He sees Fed-related turbulence from the Powell probe and a possible Supreme Court tariff ruling as risks.
• He says the bond market is not signaling a need for lower interest rates and warns bond vigilantes could push yields higher.
• He sees a stock-market melt-up risk if the Fed cuts rates too aggressively under political pressure.
• He expects banks to lead earnings and thinks a proposed 10% credit-card rate cap is unlikely to pass.
• Gold is at an all-time high, which he links to market unease over the Powell investigation.