Federal Reserve’s Vice Chairman Richard Clarida said on Friday that US Treasury bond yields are “still incredibly low” despite the upsurge witnessed this week, as reported by Reuters.
Additional takeaways
“Some ways away before we declare victory on goals and start tapering.”
“Expecting to keep the pace of purchases through this year.”
“Might see some inflation above 2% in spring and summer because of calendar effects.”
“Inflation to finish the year higher than a year earlier but still below target.”
“We have policy positioned exactly where we want it.”
“Not concerned by 10-year treasury yield above 1%.”
“Would rather focus on why rates are rising than on levels.”
“Tweaking approach to purchases is an option but for now we like the current policy.”
“No need now or in the near term to adjust the duration of purchases.”
“Powerful forces are driving down riskless rates everywhere, that is a force in asset valuations.”
“I am not concerned because I think market valuations are reflecting quicker rebound of profitability.”
Market reaction
The US Dollar Index showed no immediate reaction to these remarks and was last seen gaining 0.08% on the day at 89.88.
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