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Some investors see Powell s hawkish lean as response to looser financial conditions

Some investors see Powell s hawkish lean as response to looser financial conditions
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Some investors see Powell s hawkish lean as response to looser financial conditions

A hawkish lean from Federal Reserve Chair Jerome Powell chilled a recent rebound in stocks and bonds, with some investors suggesting the central bank was pushing back against loosening financial.

Analysis-Falling Treasury yields could turn Fed hawkish if financial conditions ease

Falling Treasury yields helped launch an explosive rebound in stocks and lifted U.S. government bonds from 16-year lows. Now some investors worry that further declines in yields could keep the Federal Reserve in a hawkish stance for longer, potentially hurting asset prices over the longer term. The paradox highlights how the relationship between yields and financial conditions - factors that reflect the availability of funding in an economy and are watched closely by central bankers - has come into focus in recent months.

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