El-Erian says the Fed has made a ‘policy mistake of historical proportions’

Investors are paying the price for Federal Reserve policy mistakes, according to Allianz economic adviser Mohamed El-Erian. “This is a two-part policy error of historic proportions,” the former CEO of bond giant Pimco told CNBC’s “Squawk Box” on Monday. “Part No. 1 was seduced by ‘transitional’ and doing nothing,” he added, referring to the term … Read more

Government bond yields soar as markets weigh threat of a recession

Hoxton/Sam Edwards | Getty Images Bond yields jumped this week after another big rate hike from the Federal Reserve, signaling a warning of market distress. On Friday, the policy-sensitive 2-year Treasury yield climbed to 4.266%, hitting a 15-year high, and the benchmark 10-year Treasury yield hit 3.829%, the highest in 11 years. The surge in … Read more

Treasury yields fall ahead of Federal Reserve interest rate decision

Treasury yields stumbled on Wednesday after hitting recent highs as traders await the Federal Reserve’s decision on interest rate hikes. The yield on the benchmark 10-year Treasury last stood at 3.536%, down 3 basis points. Meanwhile, the policy-sensitive 2-year Treasury fell about 2 basis points and last settled at 3.948%. Both Treasuries had hit highs … Read more

Inflation ‘collapse’ will spark big stock market gains: Credit Suisse

Credit Suisse expects the Federal Reserve to suspend interest rate hikes sooner than expected due to falling inflation. According to the company’s chief US equity strategist, this will trigger a powerful breakout in the market. “That’s actually what’s being valued in the broader market,” Jonathan Golub told CNBC’s “Fast Money” on Monday. “Every one of … Read more

Falling gas prices are raising hopes that inflation is slowing, New York Fed survey shows

People shop at a supermarket in Montebello, California on August 23, 2022. Frederic J. Brown | AFP | Getty Images Lower gasoline prices are raising optimism about lower inflation, according to a New York Federal Reserve poll Monday. Respondents to the central bank’s August survey of consumer expectations said they expect the annual inflation rate … Read more

Fed Vice Chair Brainard vows ‘we are in this for as long as it takes’ to stop inflation

Federal Reserve Vice Chair Lael Brainard pledged on Wednesday to continue the fight against inflation, which she says hurts low-income Americans the most. That will mean more interest rate increases and keeping rates higher for longer, she said in prepared remarks for a speech in New York. Brainard cushioned the remarks by acknowledging that policymakers … Read more

Fed’s Mester sees benchmark rate above 4% and no cuts at least through 2023

Loretta Mester in Jackson Hole, Wyoming David A. Grogan | CNBC Cleveland Federal Reserve Chair Loretta Mester said Wednesday she expects interest rates to rise significantly before the central bank can relax its fight against inflation. Mester, this year’s voting member of the Federal Open Market Committee responsible for setting rates, said she expects benchmark … Read more

U.S. needs miracle to avoid recession, economist Stephen Roach warns

Negative economic growth in the first half of the year could be a prelude to a much deeper downturn that could last until 2024. Stephen Roach, who served as chairman of Morgan Stanley Asia, warns that the United States needs a “miracle” to avoid a recession. “We will definitely have a recession as the lagged … Read more

Fed rate hikes won’t curb inflation if spending stays high, paper says

John C. Williams, President and CEO of the Federal Reserve Bank of New York, Lael Brainard, Vice Chairman of the Board of Governors of the Federal Reserve, and Jerome Powell, Chairman of the Federal Reserve, walk in the park Teton National where financial leaders from around the world gathered for the Jackson Hole Economic Symposium … Read more

Investors look ahead to Jackson Hole

US Treasury yields fell on Monday as investors anticipated the Jackson Hole economic symposium. The yield on the benchmark 10-year Treasury fell about 4 basis points to 2.9482% at 3:25 a.m. ET, while the yield on the 30-year Treasury fell 3 basis points to 3.1937%. Yields move inversely to prices and one basis point is … Read more