Powell Q&A: We are attentive to the increase in longer-term yields

<ul><li>We are attentive to the increase in longer-term yields</li><li>Higher rates can have implications for monetary policy but would need to be persistent</li><li>Higher yields are being reflected in the market and having an effect on borrowing</li><li>It does not appear that policy expectations are driving rates</li><li>We have not made any decisions on future meetings</li><li>Going into the December meeting, we'll get 2 more jobs and inflation reports</li><li>Will look at all things into December but the idea that it's difficult to re-start hikes after stopping, it's just not true</li><li>Decision for today was this meeting only</li><li>The staff did not put a recession back into the forecast</li><li>We're not thinking about rate cuts or talking about rate cuts</li><li>The question we are asking is: Should we hike more?</li><li>We are proceeding carefully</li><li>It feels like the risks are more two-sided now around inflation</li><li>Labor demand is clearly very strong but we've seen supply of workers come online</li><li>It's not clear that the conflict in the Middle East is on track to have an economic impact on the USA</li></ul><p>There was a dip in risk trades on the comments that kept December on the table. Did people really think that the Fed was going to explicitly move to the sidelines after +4.9% GDP?</p><p>Update: Evidently that was the dip to buy. S&amp;P 500 now at the highs, up 1.3%.</p>

This article was written by Adam Button at www.forexlive.com.