Fed plans for higher rates in March to curb inflation
(CNBC)
Treasury yields turned higher Wednesday after the Federal Reserve indicated that it could start raising interest rates in March, the first increase in three years.
The yield on the benchmark 10-year Treasury note jumped 8 basis points to 1.86%. The yield on the 30-year Treasury bond was up 5 basis points at 2.18%.
Fed officials previously signaled rates could be increased three times this year. Some economic forecasters now anticipate at least four hikes starting in March.
Yields popped to their highs of the session when at a press conference following the decision, Chair Powell emphasized that the central bank was committed to stable prices and that there was “quite a bit of room” to raise rates before harming the labor market.
The central bank’s monthly bond-buying will proceed at just $30 billion in February, indicating that the program could end in March as well at the same time that rates increase.
