- Tougher borrowing conditions could be required to control inflation in the U.S.
- Fed Chair declared that the economic figures show ongoing progress towards goals.
- The recent economic activity and increase in longer-term interest rates have led to a surge in U.S. mortgage rates.
According to Federal Reserve Chair Jerome Powel, the U.S. economy’s strength and the country’s ongoing tight labor markets may necessitate stricter lending requirements to control inflation.
Recent economic figures show “ongoing progress,” according to Powell. In a speech, he said, “Incoming data over recent months show ongoing progress toward both of our dual mandate goals – maximum employment and stable prices.”
The Wall Street Journal reported that the chair suggested the run-up in long-term Treasury yield could allow the central bank to suspend a historic run of interest rate increases. This would only happen if the recent progress on inflation continued.
Short-term interest rates would be held steady, as the rise in long-term interest rates could slow the economy. Yields on the 10-year Treasury note came close to 5%, which is considered a 16-year high. On Thursday, Oc…
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