© Reuters. FILE PHOTO: A man looks at an electric board displaying the Nikkei stock average outside a brokerage in Tokyo, Japan June 14, 2023. REUTERS/Kim Kyung-Hoon/File Photo
By Herbert Lash
NEW YORK (Reuters) -Treasury yields jumped and a measure of global stocks fell on Thursday after Federal Reserve Chair Jerome Powell said policymakers “are not confident” interest rates are high enough to bring inflation down to the U.S. central bank’s 2% target.
The fight to restore price stability “has a long way to go,” Powell said in comments that delved into how he sees the final phase of fighting inflation unfold, with possibly more “disinflation” needing to come from an economic slowdown.
For some, Powell’s comments were no different from last week when the Fed held interest rates steady, leading many in the market to surmise the rate hiking cycle was over. But some Fed officials have signaled otherwise as the economy remains strong.
Data showed the number of Americans filing new claims for unemployment benefits edged down last week, signaling layoffs remain low even as the jobs market shows some signs of cooling.
Richmond Fed President Thomas Barkin said on Thursday that…
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