Treasuries Rally as Powell Says Fed Has Limited Control Over Supply Shocks
Bloomberg.com • • general
Key Points:
- The US bond market rebounded from its worst selloff in 17 months as traders moved away from expecting Federal Reserve rate hikes.
- Market focus shifted to concerns that the Iran conflict could worsen the economic slowdown, influencing bond prices.
- Fed Chair Jerome Powell's remarks that supply shocks, such as rising oil prices from the US-Iran conflict, are largely beyond the Fed's control helped ease fears of aggressive monetary tightening.
- Powell's comments led traders to consider the possibility of interest rate cuts later this year, marking a significant shift in market expectations.
