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Fed Officials Say Rising Bond Yields May Stand in for Rate Hikes

Two Federal Reserve officials have said that a spike in yields for U.S. long-term treasury bonds could lessen the need for the Fed to continue hiking interest rates. So reports Reuters.

The FedIn comments to the National Association for Business Economics, Fed Vice Chair Philip Jefferson said that in light of higher bond yields—which tend to drive up mortgage rates—the central bank should “proceed carefully” if it keeps raising the benchmark federal funds rate.

In earlier comments at the same event, Dallas Fed president Lorie Logan said, “If long-term interest rates remain elevated … there may be less need to raise the fed funds rate.”

Read the full article from Reuters.

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