The U.S. Federal Reserve is in a predicament as fiscal deficits erode the American economy and the nation is seeing a spike in benchmark 10-year Treasury yields. Meanwhile, Federal Reserve Chairman Jerome Powell expressed zero worries about inflation during an interview at a Wall Street Journal Jobs Summit on Thursday. Powell didn’t explain when the easy-money policies would end and after his commentary, U.S. bonds and stocks saw a massive sell-off.
The US Fed Juggles Shaky Treasury Yields and Easy-Money Policies
On March 3, 2021, Reuters reported on how the benchmark 10-year U.S. note saw some steep declines for three days straight ahead of the Federal Reserve Chairman Jerome Powell interview at the summit. But then Treasury bond yields spiked, which gave market investors the impression that easy-money policies would be stifled. Moreover, Fed Governor Lael Brainard discussed the concerning bond yields before Powell’s summit interview as well. This was after the fact that Powell sat in front of the Senate Banking Committee and the Chairman dismissed Treasury yield concerns.
Jerome Powell showed no signs of stopping the easy-money policies the Federal Reserve has put into place since well before the first Covid-19 outbreak in the United States.The following day, Powell exchanged dialogue with Wall Street Journal (WSJ) reporters and again shrugged off the worry over Treasury yields. Stocks and Bonds sold off almost immediately in a market downturn, as Nasdaq was down -274, NYSE -239, and the Dow Jones Industrial Average -345. Powell’s lack …
Story continues on

Related posts
BitcoinBONDeconomic stimulusMarketsStocksyield curve

Bitcoin, Gold, Stocks Rebound With Drop in U.S. Dollar

Bitcoin and technology stocks rallied this week, recouping from losses due to rising bond rates. Along with changes in the bond and gold markets and new upcoming stimulus rounds, there are five important macroeconomic movements affecting Bitcoin. The Bond Market…
1.2 billionAlex GladsteinBitcoinBitcoin (BTC)Bitcoin.comBTCCurrency InflationDouble-Digit InflationEconomicsHRFhuman rights foundationhyperinflationInflationInflation DataIranLebanonSudansyriaVenezuelaZimbabwe

1.2 Billion People Live Under Double-Digit Inflation, ‘Many Have Found Escape in Bitcoin’ Says HRF’s Alex Gladstein

While central banks are focusing on creating more stimulus and economists expect inflation in the U.S. to rise, a number of other countries are suffering from considerable inflation right now. On Monday, the chief strategy officer for the Human Rights…
BitcoinBTC Trading ViewNewsNews 1Trading View

What key milestones will Bitcoin face after hitting $80,000?

Senior Commodity Strategist at Bloomberg, Mike McGlone has been painting a bullish narrative for Bitcoin lately. In the past 24 hours alone, the strategist’s data revealed that investors were now seThe post What key milestones will Bitcoin face after hitting…