Fed keeps zero-rate outlook, sees inflation bump as short-lived

By Craig Torres Federal Reserve officials continued to project near-zero interest rates at least through 2023, while upgrading their economic outlook to reflect greater optimism over the US recovery from Covid-19 amid a surge in Treasury yields. “Following a moderation in the pace of the recovery, indicators of economic activity and employment have turned up […]

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Global fund managers see inflation, taper tantrum as bigger risk than Covid-19

MUMBAI: In what can be termed as a stunning reversal, global fund managers no longer see the Covid-19 pandemic as the biggest risk to their portfolio even as the virus rages in many parts of the world. Instead, they now see inflation and a tapering of the US Federal Reserve’s bond purchases as the biggest […]

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India favors retaining RBI’s inflation targeting band

The Centre is likely to leave the inflation targeting band for its central bank unchanged, according to people familiar with the matter, while policy makers remain focused on rising prices amid the rebound from the pandemic. A consumer-price inflation band tracked by the Reserve Bank of India is likely to be retained at the current […]

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Drastic changes in monetary policy framework can upset bond market: Rajan

As the economy slowly comes out of the pandemic blues, former RBI Governor Raghuram Rajan on Sunday cautioned that “drastic changes” in India’s monetary policy framework can upset the bond market as the current system has helped in containing inflation and promoting growth. Rajan, also a noted economist, opined that the government‘s ambitious target to […]

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Wharton’s Jeremy Siegel sees stock market up another 10% this year as Covid stimulus adds fuel

Wharton School’s Jeremy Siegel told CNBC on Thursday he believes stocks will still move higher this year, even in the face of rising bond yields and inflation concerns. In an interview on “Squawk Box,” the finance professor said the $1.9 trillion coronavirus relief package, which President Joe Biden hopes to sign into law Friday, is […]

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U.S. 10-year yield could spike ‘well above’ 2% in the next three months, strategist says

Daniel Acker | Bloomberg | Getty Images The 10-year U.S. Treasury yield is likely to hit 2% by the end of the year but could spike “well above” that in the second quarter, according to ING senior rates strategist Antoine Bouvet.  Bouvet told “Street Signs Europe” on Wednesday that the envisaged re-opening of the economy […]

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Inflation may have been warming up in February, but it could be hot by May

A customer wearing a protective mask loads lumber onto a cart at a Home Depot store in Pleasanton, California, on Monday, Feb. 22, 2021. David Paul Morris | Bloomberg | Getty Images Inflation is just warming up, but by late spring it could get downright hot, even if temporarily. February’s consumer price index — a […]

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Janet Yellen says higher Treasury yields signal recovery, not inflation

WASHINGTON: US Treasury Secretary Janet Yellen on Friday said higher long-term Treasury debt yields were a sign market participants were anticipating a stronger recovery, not of increased inflation concerns. “I don’t see that the markets are expecting inflation to rise above the 2% inflation objective that the Fed has as an average inflation rate over […]

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Jerome Powell can roil markets now with just a word

By Mohamed A. El-Erian Judging from the initial market reaction to remarks by Federal Reserve Chair Jerome Powell on Thursday, he would have been well advised to follow Aaron Burr’s advice to Alexander Hamilton in the hit musical “Hamilton”: “Talk less, smile more.” This is not because he said anything inherently wrong. He didn’t. Rather, […]

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