Interesting comment from yahoo -—
The yield on the 10-yr treasury bond has dropped from 3.48% Tuesday to 3.21% this morning. That is a significant decline after a strong runup from three weeks ago. Don’t forget, Powell works for the Street and knows he cannot raise the fed. funds rate much beyond 3% at most. He has some wiggle room over the next three months, and if the 10 yr. yield continues to drop and if inflation even drops a bit, he’ll most likely back off rate increases by October. And of course, financing the $30 trillion federal debt would be disastrous if rates stay at or above 3%. Volcker faced a $900 billion federal debt in 1981 when he raised rates to extreme levels to combat inflation. The federal debt is now 31 times that amount. He doesn’t want to tank Wall St. nor face massive debt payments. But in the end, he will salvage the Street if necessary.
When stocks tank, people buy bonds. Thats why the yield went down. Everything is volatile right now.
The commenter says Powell works for the Street, he does NOT! The FED has been interfering with the market since 2008, but they are nor supposed to, stable prices is their mandate,
If what Powell is doing doesn’t work we are screwed. He should have raised the rates last year, and raised them beyond the inflation rate. The FED can only lower demand, but supply needs to be raised. Biden regime needs to get out of the way and let oil companies work.
That SOB keeps saying 9,000 leases, and repeats it like a SOB, and that is a damn lie. He knows nothing and his people know nothing.