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Jerome Powell's debate on the US bond yield curve is gaining momentum prior to the presentation by the Senate Banking Committee on Tuesday. Minneapolis Fed President Neel Kashkari said Monday on his website: "If we take into account the signs of inflation and the signs of global warming, we still have to raise interest rates, reverse the yield curve and curb the economy.no "expression".
Kashkari, who had previously stated that he was not satisfied with the horizontalization of the yield curve So, it's joined with other Fed officials concerned about inverting the curve. The horizon of the yield curve is seen as a sign of resignation seen historically. [19659002] Atlanta Fed President Bostic said the move would be "a self-fulfilling prophecy" if investors believe that reversing the yield curve would lead to a recession.
St Louis Fed President Bullard and Dallas Fed President Kap lan, also expressed the belief that the movement in the survey did not believe that this decision would produce results different from those of the past. On the one hand, President Williams of the New York Federal Reserve, who has a permanent monetary stance in monetary policy, took a moderate stance in May, arguing that the return policy would not reverse but would ignore the signal.
Cleveland Fed President Mester is more comfortable with the trend of horizontalisation. In May, Mester used the expression "The return curve is horizontal, does not mean growth or resorption at a lower level".
Fed President Jerome Powell will answer questions from the Senate Banking Committee at 10:00 am Washington time on Tuesday.
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