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Powell Says Foreign Buyers Distorting Yield-Curve Readings

  • Fed Chair underscores role of low Japanese and German rates
  • Powell commented after U.S. central bank’s last 2022 meeting
Updated on

Federal Reserve boss Jerome Powell appears unperturbed by the fact that longer-term bond yields remain low even as officials lay the ground work for tighter policy and inflation is ticking higher.

While the drop in longer-term rates may be viewed by some as indicative of where so-called terminal rates for U.S. policy might ultimately lie, Powell on Wednesday emphasized the impact of ultra-low yields in places like Japan and Germany in helping to keep them anchored.