US Treasury yields climb, Fed officials say they are not worried about inflation below target

Release time：Jun 26, 2019 From：min

US Treasury yields rose on Tuesday (May 21), and investors were concerned about Fed officials’ speeches.

The benchmark 10-year US Treasury yield rose to around 2.421%, and the 30-year US Treasury yield rose to around 2.841%.

Boston Fed President Rosengren said on Tuesday that he is not as worried as some colleagues that the current inflation rate is lower than the Fed's target.

“I do think that inflation is not up to the target is temporary,” he told the New York Economic Club. “I don’t like some of my colleagues, so I’m worried that inflation is below target.”

Rosengren is one of the 10 members of the Fed’s interest rate setting committee that has voting rights this year. He has consistently said that the way the Fed will change its inflation target for a longer period of time will benefit from the current 2% accuracy level to an average of 2%.

In 2019, the FOMC voting committee and Chicago Fed President Evans said that the Fed needs to plan for the possibility of hitting the zero interest rate cap more frequently in the future. It is undeniable that the growth rate of the US economic trend may be less than 2%.

Earlier, Fed Chairman Powell said on Monday that rising corporate debt levels would not pose a direct threat to the financial system.

In a prepared speech, Powell said: "Corporate debt will not bring higher risks to the stability of the financial system. If the situation worsens, this risk will cause widespread damage to families and businesses. At the same time, if The economy is weak, and the level of debt will definitely put pressure on borrowers."

The minutes of the latest meeting of the Federal Reserve will be announced on Wednesday.

The Fed said earlier this month that it will keep interest rates unchanged, but Powell added at a press conference that officials believe the decline in inflation in the first quarter is temporary.

Powell said on May 1st: "We believe that our current policy stance is appropriate. We believe that there is no strong reason to move in any direction. We stated in the long-term goal and monetary policy strategy statement that if the inflation rate continues to be high The committee will be concerned at or below 2%." (Source: FX168)