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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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 says ‘disorderly’ market conditions would concern him sending yields higher

By Rich Miller and Catarina Saraiva Federal Reserve Chair Jerome Powell said he is monitoring financial conditions and would be “concerned” by disorderly markets, but stopped short of offering specific steps — which sent Treasury yields higher. “We monitor a broad range of financial conditions and we think that we are a long way from […]

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