Economics
Powell Sends Dovish Message That Leaves Bond Market Disappointed
- Fed chair says there’s a lot left to do before economy healed
- Treasury prices slip and yields rise in response to comments
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Federal Reserve Chair Jerome Powell sounded a gentle word of caution to the bond market on Thursday that he’s watching the jump higher in long-term interest rates, but stopped well short of trying to rein them in.
The recent run-up in bond yields “was something that was notable and caught my attention,” he told a Wall Street Journal webinar. “I would be concerned by disorderly conditions in markets or persistent tightening in financial conditions that threatens the achievement of our goals.”