U.S. Treasury yields rose on Friday morning, after Fed Chairman Jerome Powell acknowledged in a Senate testimony that inflation was 'well above target.'
grilled by senators on ThursdayWhile Powell reiterated the view that higher inflation looked to be transitory, he also acknowledged that price pressures were well above the central bank's target.
Inflation and employment growth are both determining factors as to when the Fed will tighten its easy monetary policy. "We've said that we would begin to reduce our asset purchases when we feel that the economy has achieved substantial further progress measured from last December," Powell said Thursday. "We're in active consideration of that now."
Treasury Secretary Janet Yellen told CNBC's "Closing Bell" on Thursday that she believed there would be"I'm not saying that this is a one-month phenomenon. But I think over the medium term, we'll see inflation decline back toward normal levels," she said. "But, of course, we have to keep a careful eye on it."The University of Michigan is also set to release its preliminary July data on consumer sentiment and inflation expectations at 10 a.m. ET.
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