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Fed Officials Head Toward Another Pause After Surge in Yields
Top Federal Reserve officials are coalescing around the idea that tighter financial conditions after a recent surge in US Treasury yields may substitute for additional increases in their benchmark interest rate. Fed Vice Chair Philip Jefferson on Monday told a conference that he would “remain cognizant of the tightening in financial conditions through higher bond yields” in assessing “the future path of policy,” echoing similar comments from other policymakers in recent days. The key question for officials is whether the recent increase in borrowing costs reflects investor expectations for a stronger economy ... (full story)