Yields on US Treasuries remained largely unchanged Wednesday morning after Federal Reserve Chairman Jerome Powell reiterated in Congress’s testimony that inflationary pressures were temporary.
Speak in front of Tuesday house panelPowell continued to attribute most of the recent inflation surge to factors closely related to the resumption of the economy.
He said it was “very unlikely” for the United States to repeat 1970s-style inflation.
Bob Parker, a member of Quilvest Wealth Management’s investment committee, told CNBC’s “Squawk Box Europe” Wednesday that “a period of significantly higher inflation will come.” He expected headline inflation to remain between 4% -5% and core inflation close to 4%, which he believed would “easle early next year.”
But Parker added, “it could be a period of core inflation close to 3% instead of the Fed and Jay Powell’s forecast of 2%.”
On Wednesday, Federal Reserve Governor Michelle Bowman will speak at the Federal Reserve Bank of Cleveland’s 2021 Policy Summit at 9:10 AM EST on community development and economic resilience.
On the data side, the June Markit Flash Purchase Manager index is set to be released at 8:45 EST.
After that, the new home sales data for May is set to be released at 10 am Eastern Standard Time.
The auction is scheduled to take place on Wednesday, with $ 35 billion of 119-day invoices, $ 61 billion of 5-year bonds and $ 26 billion of 2-year floating rate notes auctioned.
— — Jeff Cox of CNBC contributed to this market report.
Treasury brings depression following Powell’s parliamentary speech
Source link Treasury brings depression following Powell’s parliamentary speech