Philip Jefferson News

Investing.com -- Several Federal Reserve policymakers are due to deliver closely-watched speeches on Tuesday, with investors keen to receive any clues about how a recent spike in U.S. Treasury yields could impact the central bank's interest rate path.

Investing.com — U.S. stock futures rose Tuesday, boosted by lower U.S. Treasury yields as investors digested commentary from Fed officials while keeping an eye on developments in the conflict between Israel and Hamas.

Investing.com — European stock markets rose Tuesday, with investors returning their focus to potential central bank moves while keeping an eye on the conflict in the Middle East.

European shares rallied after dovish comments by Federal Reserve officials and the prospect of more economic stimulus by China brought some risk appetite back to markets as investors continue to evaluate the potential impact of the Israel-Hamas conflict. 

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Middle East. Cash Treasury markets had been closed for a holiday on Monday, so Tuesday morning was traders' first chance to react to Palestinian militants' surprise attack on Israel as well as Fed officials' overnight comments. After dropping 15 basis points at the open, 10-year yields were 12.5 bps lower at 4.66% at 1235 GMT. Two-year yields also dived more than 13 bps to a one-month low of 4.926% as short-term rate expectations were dialled back. Yields fall when bond prices rally. Fed Vice Chair Philip Jefferson and Dallas Fed president Lorie Logan both noted on Monday that the recent run-up in yields may reduce the need for further interest rate hikes. «If term premiums rise, they could do some of the work of cooling the economy for us, leaving less need for additional monetary policy tightening,» Logan said. Analysts at Citi noted Logan has been one of the strongest advocates that the Fed would need to follow through with further tightening, but interpreted her remarks as suggesting that higher long-term rates curtail the need for short-end hikes. Implied futures pricing has reduced the probability of another rate hike this year from above 40% last week to about 26% on Tuesday, according to CME's FedWatch tool. The Mideast conflict, already claiming more than 1,500 lives, drove bond yields lower globally on Monday as investors turned to safe-haven assets.

By Jamie McGeever

By Davide Barbuscia

Two Federal Reserve officials have suggested that the central bank may leave interest rates unchanged at its next meeting in three weeks

Investing.com — The Dow closed higher Monday, as investors bought the early-day weakness after weighing up a more cautious tone rate hike from Federal Reserve officials and rising geopolitical tensions amid fears the Israel-Hamas conflict.  

By Howard Schneider and Ann Saphir

Underlying U.S. inflation is seen rising at a monthly pace that corroborates the message from central bankers that interest rates will need to stay higher for longer.

(Reuters) -Philip Jefferson on Wednesday took the oath of office as the Federal Reserve Board's new vice chair, the U.S. central bank said, as policymakers gear up for an interest-rate-setting meeting next week.

(Reuters) -The U.S. Senate on Thursday confirmed World Bank economist Adriana Kugler to the Federal Reserve Board of Governors, where she will help set interest rates for the world's biggest economy.

By Ann Saphir

Federal Reserve governor Philip Jefferson has won confirmation from a majority of members of the United States Senate, placing him in position to become the Fed's next vice chair.

By Richard Cowan and Ann Saphir

By Richard Cowan and Ann Saphir

WASHINGTON —  The Federal Reserve on Wednesday decided against what would have been an 11th consecutive interest rate increase as it measures what the impacts have been from the previous 10. But the decision by the Federal Open Market Committee to hold off on a hike at this meeting came with a projection that another two quarter percentage point moves are on the way before the end of the year.

US labor market data for May is due on Friday the 2nd of June.

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