A good piece from the Financial Times with a snapshot of where we are at in the US and new Federal Reserve Chair Powell.
Yields on both short- and long-term US bonds have been rising … short yields have risen faster than long ones, suggesting that the long-term outlook for growth and inflation remains subdued. The step-up in the 10-year yield in recent weeks suggests that this may be changing.
hints that the economic cycle may be peaking … the recent rumbles do underline the need for investors and policymakers to be prepared should the market fall. Most importantly, the US Federal Reserve must steel its nerves, and stick to its slow and steady raising of rates. It is essential that Jay Powell, the Fed chairman, retain his credibility as an independent policymaker.