Sumerlin Says Fed Would Need to Stop Cuts If 10-Year Yields Rose

Economist Marc Sumerlin, viewed as a candidate to chair the Federal Reserve, said policymakers should slash interest rates next month, but cautioned that they would have to stop if longer-term Treasury yields rose.

“The weakest part of the market, or the economy right now is housing, and so you can’t have the long end go up,” Sumerlin, an economist who runs the consulting firm Evenflow Macro, said in a television interview on Bloomberg Surveillance. “That’s your constraint right now.”