The Bank of Russia left its key interest rate unchanged for the fifth policy session in a row on Friday, but did not rule out the possibility of a rate hike in future as inflation is rising gradually.
Week Ahead: Rising Treasury Yields will make this an interesting FOMC decision
March 12, 2021SharePrint
The bond market seems determined to make this an interesting FOMC policy decision. Treasury yields have been surging after the Biden administration passed the $1.9 trillion COVID relief bill and set a May 1
st goal of getting vaccines to all adults. The Fed welcomes a steeper yield curve, but the current trajectory could be disruptive to the economic recovery. Market participants want to know how quickly do yields need to rise to raise concerns of tighter conditions or trigger disorderly markets? The taper tantrum might get priced in a lot sooner by Wall Street, but the Fed will patiently wait until economic indicators confirm the recovery remains much later in the year.