Federal Reserve Chair Jerome Powell suggested the run-up in long-term Treasury yields could allow the central bank to suspend a historic run of interest-rate increases so long as recent progress on inflation continues.
Powell’s remarks at a Thursday lunchtime address in New York closely tracked those of colleagues who indicated in recent days that they would hold short-term interest rates steady at their next meeting on Oct. 31-Nov. 1.
That is in part because the swift rise in long-term rates over the past month could slow the economy, effectively substituting for another Fed hike if higher borrowing costs are sustained.
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