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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Masters of equities universe are unfazed by spike in bond yields

The recent rise in interest rates triggered a bout of volatility, but it’s not making the pros in the stock market run for the hills just yet. Some of the world’s biggest fund managers say equities can persevere and continue rallying through the rise in government bond yields. They are focusing instead on prospects for […]

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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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Dalal-Street fret not, bond tantrum will pass

ET INTELLIGENCE GROUP: Are we facing Taper Tantrum II? Or, will stocks remain relatively unscathed even as yields harden stateside? For the moment, investors could breathe relatively easy. Going by recent history, yields must harden more before equities in Mumbai are repriced. More importantly, if yields in New York or London head north when accompanied […]

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Bitcoin slides in worst weekly drop since March amid selloff

By Eric Lam and Olivia Raimonde Bitcoin’s rally hit a speed bump as the world’s largest cryptocurrency witnessed its worst weekly decline in almost a year amid wider losses in risk assets. The digital token slumped 20 per cent this week, the most since the pandemic-fueled selloff last March. The wider Bloomberg Galaxy Crypto Index, […]

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Should you be fearful or greedy now? Warren Buffett’s annual letter may hold clue

By Katherine Chiglinsky While 2020 raged, Warren Buffett mostly held his tongue. He stayed quiet through a heated presidential election, a racial reckoning that sparked nationwide protests and an exuberance for stocks that’s gripped millions of Americans. Not to mention a global pandemic. Now, the billionaire chief executive officer of Berkshire Hathaway Inc. has a […]

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Jerome Powell signals Fed to keep buying bonds even as outlook improves

By Rich Miller Federal Reserve Chairman Jerome Powell signaled that the central bank was nowhere close to pulling back on its support for the pandemic-damaged U.S. economy even as he voiced expectations for a return to more normal, improved activity later this year. “The economy is a long way from our employment and inflation goals, […]

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