Federal Reserve Officials Acknowledge Bond Yield Spike's Impact on Interest Rates

Two Federal Reserve officials have suggested that the central bank may leave interest rates unchanged at its next meeting due to a surge in long-term interest rates, which has made borrowing more expensive and could help cool inflation without further action by the Fed. The yield on the 10-year U.S. Treasury note has jumped to a 16-year high, raising borrowing costs for mortgages and corporate bonds. The officials' remarks coincide with expectations in financial markets that the Fed will skip rate hikes in November and December. They also highlight the debate among economists and Fed officials about the factors driving higher long-term rates and the impact of rate hikes on the economy.