(Bloomberg) — The world’s biggest bond market was hammered anew, with the two-year yield briefly hitting 5% after Jerome Powell signaled policymakers are in no rush to cut interest rates.
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Treasury yields climbed to fresh 2024 highs as the Federal Reserve chief said it will likely take longer to have confidence on inflation — adding that it’s appropriate to give restrictive policy time to work. The dollar saw its best five-day gain since October 2022, while the slide in stocks from a record deepened.
Powell’s remarks represented a shift in his message after a third straight month in which a key measure of inflation exceeded forecasts. He also signaled the US central bank will likely keep rates on hold for longer than originally planned, according to Jeffrey Roach at LPL Financial.
“Powell’s comments make it clear the Fed is now looking past June,” said Krishna Guha at Evercore. “His remarks are…
