US yields at crisis-era highs as Fed's Hammack floats rate rises
Bloomberg reported that the Fed's Hammack floated 'some number' of rate increases on Monday. US long-term yields are at levels last seen in the financial crisis.
Symbolic imageLong-term US yields are at financial-crisis highs after the Fed's Hammack floated possible rate increases, with foreign creditors pulling back. Markets now await Tuesday's inflation figures, while Trump's push to oust governor Lisa Cook stays blocked and Warsh says little.
The US Federal Reserve sets interest rates under a mandate that includes keeping inflation in check, and its chair's words move markets on their own. Kevin M. Warsh holds that post, and investors and commentators read each of his appearances for how firmly he is committed to that goal.
Bloomberg reported that the Fed's Hammack floated 'some number' of rate increases on Monday. US long-term yields are at levels last seen in the financial crisis.
The dollar held near a two-month trough on Monday and gold drifted lower from a seven-week peak as markets awaited US inflation figures due on Tuesday. Soft jobs data had eased expectations of a September rate rise, while Wall Street reads Treasury Secretary Bessent's recent moves as a sign of anxiety in the bond market.
The Wall Street Journal reported that the Dow Jones reached 54,000 as US stocks ended the week at record highs, supported by strong corporate earnings. The paper also wrote that the labour market may not need as many new jobs as before to count as healthy.
US President Donald Trump has renewed his effort to remove Federal Reserve governor Lisa Cook, despite a Supreme Court ruling in June that blocked his first attempt, Bloomberg and the South China Morning Post reported on Friday. Al Jazeera notes that Trump has clashed with Federal Reserve members over his push for rapid interest rate cuts despite inflation.
The US economy lost 23,000 jobs in July instead of the 80,000 gains economists had expected, the Bureau of Labor Statistics reported on Friday. Markets rallied as traders pared bets on a Federal Reserve rate rise.
Trump made calls to Kevin Warsh, Bloomberg reported on Thursday, describing it as the latest sign of his bid to influence the Federal Reserve. The Financial Times reported that Warsh will stick with lean Fed messaging despite a market backlash, while Bloomberg wrote that his faith in markets sidelines more nuanced policy tools.
ADP data published on Wednesday showed US companies added 44,000 jobs in July. Federal Reserve governor Lisa Cook said the central bank is ready to raise interest rates if inflation does not cool, Bloomberg reported.
Federal Reserve Chairman Kevin M. Warsh is under pressure to clear up mixed signals about his commitment to bringing inflation down, the New York Times reported on Tuesday. His latest public appearance set off a bout of market volatility.