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Rising market yields show Fed retains credibility -Breaking


© Reuters. FILE PHOTO – Raphael Bostic, President of Federal Reserve Bank of Atlanta participates in a panel discussion during the American Economic Association/Allied Social Science Association 2019 meeting, Atlanta, Georgia (USA), January 4, 2019. REUTERS/Christop

JACKSONVILLE. Fla. (Reuters). – A rise in interest rates for home mortgages and U.S. Treasury Bonds shows that the Federal Reserve is still credible in fulfilling its promise to tame rising inflation, Atlanta Fed President Raphael Bostic stated on Wednesday.

“We moved our policy rates 25 basis points. The 30 year mortgage rate was moved 2 percentage point. Bostic spoke out in support of the World Affairs Council of Jacksonville.

Markets still trust the Fed with credibility, according to the Fed rate moves and yields. They have said what we are going to do and they have priced in us doing them … That is an important dimension in the marketplace.”