Posted 10/5/2023, 8:13:00 PM
Fed Officials See Rising Treasury Yields as Helpful for Inflation Fight
- Fed officials not too worried about rise in Treasury yields, see it as helping fight inflation
- Higher long-term rates slow economy, easing inflation pressures without Fed having to act more
- Rise in yields so far orderly, not causing financial instability or recession
- Fed ready to react if yields spike sharply or economy slows too fast
- Policy still focused on lowering inflation, but Fed keeping options open depending on data
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