A Fed governor says the central bank should act if inflation doesn’t improve soon. The Treasury secretary says high energy prices are a shock the Fed should look past.
A Federal Reserve governor stated that the central bank should take action if inflation does not improve soon. In contrast, the Treasury secretary suggested that high energy prices are a shock that the Fed should look past.
The 10-year Treasury yield has risen to around 4.79%, its highest level since January 2025, and the two-year yield is near 4.39%. According to FXStreet, these yields have increased despite American forces striking Islamic Revolutionary Guard Corps targets inside Iran, which would normally be expected to boost demand for safer assets.
The recent movement in Treasury yields has been driven more by concerns about inflation and an upcoming meeting, rather than geopolitical risk. The two-year yield has risen more sharply than the 10-year yield, indicating that market participants are focused on the Fed's potential response to inflation at its September 16 meeting.
Brief written by urgent.news from WSJ Economy, FXStreet — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
