NEW YORK (Reuters) – Yields of US Treasury bills fell on Monday after declarations of the vice -president of the Federal Reserve (Fed) in charge of supervision, Michelle Bowman, evoking a first drop in interest rates this year in July.
Michelle Bowman, recently appointed by US President Donald Trump at the head of the Fed banking supervision, said on Monday that she was more concerned with the risks weighing on the job market than by potential inflationary effects of customs duties.
“It is time to envisage an adjustment of guiding rates,” said Michelle Bowman according to the text of a speech she was to say during a meeting in Prague, in the Czech Republic.
She said inflation seemed to be on a sustained trajectory towards a return to 2% and that it expected that the trade policy of the United States has only “minimal impact” on inflation.
“If the inflationary pressures remain moderate, I would be in favor of a drop in the key rate as of our next meeting in order to bring it closer to its neutral level and to maintain good health of the labor market,” said Michelle Bowman.
After these declarations, the Dow Jones advances 0.38%, Standard & Poor’s 500 takes 0.54%and the Nasdaq Composite gains 0.53%.
The yield of ten -year -old Treasuries fell from 5.5 base points to 4.3200%. The two -year -old loses 5.9 base points at 3.8485%.
(Tatiana Bautzer report, Mara Vîlcu for the )
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