Federal Reserve Officials See Bond Yield Spike as Opportunity to Maintain Interest Rates

Two Federal Reserve officials, Philip Jefferson and Lorie Logan, have suggested that the central bank may leave interest rates unchanged at its next meeting due to a surge in long-term bond yields. The increase in yields has made borrowing more expensive and could help cool inflation without further action by the Fed. The remarks coincide with market expectations that the Fed will skip rate hikes in November and December, and simply maintain its benchmark rate at its current high level. The officials also discussed the factors influencing longer-term rates and the potential impact of previous rate hikes on the economy.