Fed holds at 3.50%–3.75% as inflation concerns keep US yields and dollar elevated
The Fed’s unchanged policy rate was accompanied by elevated Treasury yields and ongoing inflation concerns.
MSA market desk
Desk brief
The Federal Reserve left its policy rate unchanged at 3. 50%–3. 75% at its July meeting. Market coverage cited continued official concern about inflation and the energy shock, while the 10-year Treasury yield was around 4.
65% and the two-year yield around 4. 32%. The combination points to continued sensitivity in global markets to a higher-for-longer US rates profile.
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