Fed Officials Embrace Bond Yield Surge

Two Federal Reserve officials, Philadelphia Fed President Patrick Harker and Boston Fed President Susan Collins, tentatively embrace the recent jump in bond market yields, seeing it as complementary to the central bank's efforts to slow the economy and bring inflation back to the 2% target. They also express a good chance that no more interest rate increases will be needed. Harker and Collins believe that the rise in yields helps cool the economy and fits into the broader story around the economy and monetary policy. They suggest that the Fed may have done enough and it may be a good idea to hold steady for the rest of the year to assess the impact on the economy.