Economics
Fed Views Rising Yields as Bullish Sign Reflecting 2021 Optimism
- Fed presidents say rising yields not a worry at this point
- Bullard, George, Bostic stress it’s premature to talk tapering
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Several Federal Reserve presidents argued Thursday that surging Treasury yields reflect economic optimism for a solid recovery from the Covid-19 crisis and stressed that the central bank has no plans to tighten policy prematurely.
“I think the rise in yields is probably a good sign so far because it does reflect better outlook for U.S. economic growth and inflation expectations which are closer to the committee’s inflation target,” St. Louis Fed President James Bullard told reporters after a virtual speech.