Powell Says Fed Independence Faces Growing Political Threats
Powell said the Federal Reserve, along with institutions such as courts and universities, is facing a political "stress test" under President Donald Trump's administration.
Powell said the Federal Reserve, along with institutions such as courts and universities, is facing a political "stress test" under President Donald Trump's administration.
The savings account was not a sophisticated instrument. It was a vessel for deferred consumption—a way of translating present discipline into future security. The interest it paid was modest, but it moved in the same direction over time.
U.S. bond yields have climbed to their highest levels in a year as investors brace for prolonged inflation linked to the Iran conflict and soaring oil prices
President Donald Trump, who has repeatedly pushed for lower interest rates, said Warsh should remain “totally independent” while leading the institution.
The rise in bond yields comes along with the news that, according to government statistics (which are manipulated to understate the real rate of inflation), consumer prices increased by 3.8 percent over the past year while wages increased by 3.6 percent
The benchmark 10-year yield also rose sharply to 4.67%, increasing pressure on mortgage rates and broader borrowing costs across the economy
Warsh’s appointment follows a Senate confirmation vote last week that largely split along party lines
The 10-year U.S. Treasury yield rose to 4.601%, its highest level in 15 months, while the 30-year bond remained above 5.1%, according to market data.
Recent economic reports showed inflation pressures continuing to build.