Zero Hedge: Powell was not concerned by higher yields early last week but he may change his tune on 4 March
- Brainard has already admitted that more recent price action has caught her attention
- We expect Powell to flag scope for a policy response if rising long-term yields threaten recovery
The key event for the market this week would usually be the US non-farm payroll report but focus is instead centred on Fed Chair Powell’s speech on 4 March. We doubt that he will signal near-term Fed policy action in response to the recent UST yield volatility. Given current yield levels and financial conditions, it is difficult to justify such a move without appearing to be driven solely by market developments. Read More
