There is, however, also the possibility that the failure to tighten when such a move is widely expected may leave in place higher long-term rates (or raise them further), if our failure to act is viewed as inconsistent with our commitment to price stability. Such preemptive pricing in the bond market is the private sector analogue to preemptive moves in the federal funds rate.
When the bond market is correct, its preemptive pricing should be rewarded by the expected movement in the federal funds rate. To fail to so reward it would be to undermine the ability and willingness of the bond market to engage in such preemptive pricing.