Fed Officials Suggest Rising Yields Could Reduce Need for Further Rate Hikes

Top Fed officials indicate rising Treasury yields may reduce need for further rate hikes, with markets substituting for Fed policy moves.

Vice Chair Jefferson says Fed must balance risks of under- and over-tightening, remain "cognizant" of tightening financial conditions.

Dallas Fed's Logan says higher bond yields from rising term premiums could offset need for more rate hikes.

Comments caused investors to lower odds of further 2022 rate hikes from Fed.

Upcoming data still key, with potential for more hikes if economy grows faster than expected.