U.S. Treasury yields were lower on Tuesday as investors weighed comments from Federal Reserve Chairman Jerome Powell on the outlook for the economy and interest rates.
At 3:04 a.m. ET, the yield on the 10-year Treasury was down by over three basis points to 4.1983%. The 2-year Treasury yield was last more than one basis point lower to 4.4404%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
On Monday, Powell said the central bank will not wait until inflation has reached its 2% target rate before cutting interest rates.
Waiting to cut rates until the target has been reached would mean “you’ve probably waited too long,” he said, explaining that the tightness of monetary policy would still be having an impact, and inflation would likely fall below 2%.
Powell, however, said the Fed is still looking for “greater confidence” that inflation will return to 2%.
“What increases that confidence in that is more good…
