Economics
Dimon's 4% Yield, Needs Inflation to Hit 3% : UBS Asset
- UBS Asset Management’s Anderson sees 3.5% as a bear scenario
- Ten-year Treasury yield pierced 3% for first time since 2014
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Jamie Dimon’s warning that investors should be prepared for benchmark U.S. yields to climb to 4 percent has drawn some skepticism.
There’s just not enough inflationary pressures in the world’s largest economy to force the Federal Reserve’s hand on interest rates and send 10-year note yields to 4 percent, in the view of Anne Anderson at UBS Asset Management. Dimon, the JPMorgan Chase & Co. chief executive officer, said Tuesday that "people should be prepared" for 4 percent, and that higher rates would amount to normalization if they climbed alongside a strong economy.