Central Banks
Fed Officials Head Toward Another Pause After Bond Yields Surge
- Vice chair, bank presidents flag tighter financial conditions
- Market is doing the Fed’s ‘dirty work,’ economist says
Philip Jefferson.
Photographer: Nitashia Johnson/BloombergThis article is for subscribers only.
Top Federal Reserve officials are coalescing around the idea that tighter financial conditions after a recent surge in US Treasury yields may substitute for additional increases in their benchmark interest rate.
Fed Vice Chair Philip Jefferson on Monday told a conference that he would “remain cognizant of the tightening in financial conditions through higher bond yields” in assessing “the future path of policy,” echoing similar comments from other policymakers in recent days.