Powell’s statements confuse the markets and raise bond yields to the highest level since 2006

Powell said that the flexibility of the US economy may prompt the Fed to apply more interest increases in the coming period, which may suggest that the US Federal Council will increase interest during its next meeting in September, noting that the US economy is growing more than expected, and that the spending method of consumers Accelerating, trends that could keep inflationary pressures going in the country.

As a result, US Treasury yields for two years jumped by about 8 basis points to 5.097 percent, heading towards its highest level since July 2006, when it scored 5.114 percent.

The spread between the 2-year and 10-year Treasury yields widened to -83.50. This is the deepest reversal since Aug 10 when the gap widened to -88.20.

The yield on US government bonds for 10 years settled at 4.252 percent, and the yield on bonds for 30 years settled at 4.296 percent.

The dollar index – which measures its value against a basket of major currencies – rose 0.35 percent to 104.33 points.

Addressing the annual meeting of central bank governors in Jackson Hole, Wyoming, Powell also emphasized that “sustainably bringing inflation down to 2 percent will require a period of below-trend economic growth as well as a sluggish labor market” that remains taut as the unemployment rate remains. down to about 3.6 percent.