bond prices: Bond prices have fallen and stocks have risen as investors anticipate that Trump proposals to cut taxes and boost infrastructure and defense spending will lead to faster inflation and stronger growth. function global function ad Code markets/article dimensions id 1 0 2 1 10 strategy targeting targeting Modifiers ; ; window ; Yellen testimony ignored the very real possibility of substantial fiscal stimulus next year, Ian Shepherdson, chief economist at Pantheon Macroeconomics Ltd., said in a note, according to Bloomberg. She does not want the Fed to become even more of a political punch bag than it is already. Yellen, who made no mention of the prospective policies of the incoming administration of President-elect Donald Trump, reiterated the expectation of Fed officials that future rate increases will be gradual. Yellen remarks will serve to cement expectations, barring a significant negative shock, for an increase in interest rates when the Federal Open Market Committee gathers in Washington Dec. 13-14. Risks of Delay The Fed chair warned of the risks attached to waiting too long before raising rates. Pricing in federal funds futures contracts already imply a greater than 95 percent chance of a quarter-point hike.
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