Fed Officials Suggest Pausing Rate Hikes as Higher Bond Yields May Tame Inflation

Federal Reserve officials suggest leaving rates unchanged as bond yield spike may cool inflation without further Fed action.

Higher long-term rates reduce need for more Fed hikes, say officials Jefferson and Logan.

Markets now expect no rate hikes at Nov or Dec meetings after recent remarks.

Officials debate if higher long-term rates due to inflation/growth expectations or increased risk.

Fed divided on how long rate hikes take to impact economy, with lags being "long and variable."