China News Agency, New York, April 5 (Reporter Wang Fan) U.S. Federal Reserve Governor Lyle Brainard said in a speech to the Minneapolis Fed on the 5th that the Fed will continue to “methodically tighten monetary policy” “Including a series of interest rate hikes and a rapid reduction of the balance sheet from the regular monetary policy meeting next month.
Brainard, who was nominated by U.S. President Joe Biden as the vice chairman of the Federal Reserve at the end of last year, has attracted the attention of the financial market because of his long-term voting rights on monetary policy. On the same day, Brainard made it clear that the Fed needs to act quickly to control the persistently high inflation rate. After her speech, U.S. Treasury yields across maturities rose sharply during the session.
As of the close of the day, the benchmark 10-year U.S. Treasury yield rose 15 basis points to 2.554%, the highest in three years; the 5-year Treasury yield rose more than 15 basis points to 2.704%, the highest level since the end of 2018; The yield on the more rate-sensitive 2-year Treasury note rose nearly 10 basis points to 2.524%, its highest level since March 2019.
U.S. financial media CNBC said that Brainard has always been regarded by investors as a supporter of loose policies and low interest rates. This time her statement turned “hawkish”, indicating that the Federal Reserve intends to tighten monetary policy in response to high inflation. urgent.
The “Wall Street Journal” quoted analysts as saying that whether it was the previous “inversion” of the 10-year Treasury bond and 2-year Treasury bond yield curve, or Brainard’s speech this time, they all released a signal that the growth of the U.S. economy will Under pressure to slow down. People need to choose higher-quality assets that can withstand the effects of an economic slowdown, such as stocks of companies with strong balance sheets.
However, the US stock market is still in a period of correction and volatility. On the 5th, the three major stock indexes in New York closed down, of which the Nasdaq composite index fell by 2.26%. Bloomberg pointed out that there is great uncertainty in the current investment field. Both the bond market and the stock market are affected by multiple factors. Investors must pay close attention to market dynamics, including the Fed’s monetary policy stance, the development of the situation in Ukraine, and global commodity prices. Trends, U.S. supply chain and labor market conditions, etc. (over)Return to Sohu, see more
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