Economics
Fed’s Powell Says No Need to React to Rising Treasury Yields
- Overall, financial conditions are still accommodative, he says
- Fed chairman repeats he’d be worried by disorderly trading
This article is for subscribers only.
Federal Reserve Chair Jerome Powell said current monetary policy is appropriate and there’s no reason to push back against a surge in Treasury yields over the past month.
“The stance of monetary policy we have today we believe is appropriate,” Powell said in a virtual press briefing Wednesday following a meeting of the Federal Open Market Committee. “We think our asset purchases in their current form -- which is to say across the curve, $80 billion in Treasuries, $40 billion in mortgage-backed securities, on net -- we think that’s the right place for our asset purchases.”