FOMC Press Conference on 01 November - Key Transcript
It is a 26-page transcript, and I have highlighted some of his key statements.
Question:
The rise in long-term bond yields, to what degree is that the planned action by the Fed at this meeting?
Reply:
As for the Committee, we are committed to achieving a stance of monetary policy that's sufficiently restrictive to bring inflation down to 2 percent over time. And we're not confident yet that we have achieved such a stance.
As I mentioned, persistent changes in broader financial conditions can have implications for the path of monetary policy. In this case, the tighter financial conditions we're seeing from higher long-term rates but also from other sources like the stronger dollar and lower equity prices could matter for future rate decisions, as long as two conditions are satisfied.
The first is that the tighter conditions would need to be persistent and that is something that remains to be seen. But that's critical, things are fluctuating back and forth, that's not what we're looking for. With financial conditions, we're looking for persistent changes that are material.
The second thing is that the longer-term rates that have moved up, they can't simply be a reflection of expected policy moves from us that we would then, that if we didn't follow through on them, then the rates would come back down. So, and I would say on that, it does not appear that an expectation of higher near-term policy rates is causing the increase in longer-term rates.
So, in the meantime though, perhaps the most important thing is that these higher Treasury yields are showing through a higher borrowing cost for households and businesses and those higher costs are going to weigh on economic activity to the extent this tightening persists and the mind's eye goes to the 8 percent, near 8 percent mortgage rate, which could have pretty significant effect on housing.
可能是包含下列内容的图片：钞票和上面的文字是“CLASSIFIED 5”
$Micro 10-Year Yield - main 2311(10Ymain)$ $Micro 2-Year Yield - main 2311(2YYmain)$ $Micro 30-Year Yield - main 2311(30Ymain)$
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