U.S. Yields, Dollar Tumble as Fed’s Clarida Cautions on Global Growth
- Benchmark 2-year Treasury yield falls to lowest since October
- The Fed ‘can’t hike in a vacuum,’ says CIBC’s Bipan Rai
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The dollar tumbled with Treasury yields on Friday after Federal Reserve Vice Chairman Richard Clarida said the central bank has to factor in the global growth outlook as it charts policy.
The Bloomberg Dollar Spot Index sank 0.5 percent and two-year Treasury yields dropped to the lowest since October after Clarida told CNBC that the Fed is getting closer to neutral and that there is “some evidence” that the world economy is slowing. His comments follow those of Fed Chairman Jerome Powell, who cited the prospect of cooling global demand in a speech Wednesday.