Powell inflation won't last long, said wall street began to recognize
Federal Reserve Chairman Powell and his colleagues’ view that the current sharp rise in consumer prices will not last seems to have begun to be recognized by investors. On Thursday, after the news that inflation in May rose to 5% for the first time since 2008, the yield on 10-year Treasury bonds bucked the trend and fell to a three-month low of about 1.43%. Although the inflation expectation index of the bond market rose slightly, it was still far lower than the year high set in May. This optimistic market reaction could be good news for Fed officials as the interest rate meeting begins next week. It is generally expected that the Federal Reserve will maintain its ultra loose monetary policy position in order to achieve the dual goals of full employment and 2% average inflation rate. They have also been playing down the possibility that their policies could lead to a sharp rise in inflation and a sustained rise in prices

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