Federal Reserve May Be About To Send Treasury Yields Flying

But a few Fed officials were less comfortable than the prospect of higher rates as implied by the central bank's June projections, saying that too quick a path might prevent a "sustained" return to inflation at that level.

Some Fed officials in recent weeks have said they want to see more proof that such price softness is transitory before resuming rate increases, but haven't signaled similar qualms about initiating the balance-sheet runoff. The markets have doubted the Fed will hike rates for a third time this year, giving just about 50 percent odds for a September rate rise.

If the Fed sends a hawkish message in the FOMC Minutes at 2 pm ET, expect those probabilities to rise (and the USA dollar too).

"We're not targeting financial conditions", Ms. Yellen said.

Ex- Man United Defender Stam Extends Coaching Contract With Reading
Speaking after the defeat at Wembley, Gunter insisted it was vital the Royals kept hold of manager Stam for the upcoming season.

The yield for the benchmark 10-year Treasury note TMUBMUSD10Y, -0.72% steadied at 2.350%.

The moves would give officials time to assess how markets react to the balance-sheet reductions and to confirm their view that a recent slowdown in inflation will fade. "I wonder whether or not the Fake News Media will so report?"

Meanwhile, oil prices tanked as Russian Federation ruled out any proposals to deepen OPEC-led production cuts.

Because of the markets' performance and subdued volatility, a few Fed officials expressed concern about "a buildup of risks to financial stability".

Mithali Raj, Deepti Sharma lead India to victory over Lanka
A well-deserved 50 for Dilani Manodara highlighted Sri Lanka's fightback, but India held out for their fourth win from four. Jhulan Goswami and Poonam Yadav took two wickets each whereas, Deepti Sharma and Ekta Bisht got one wicket each.

The amount of assets on the Fed's balance sheet more than quadrupled to $4.5 trillion since 2008 as the central bank bought Treasury bonds and mortgage-backed securities to try to stimulate the economy. One of the goals of gradually unwinding the balance sheet would be to not disrupt broader economic growth despite the possibility of rising long-term rates.

But the clearest sign yet of the cracks developing in the consensus around the current fixed target is an implicit suggestion by the Federal Open Market Committee of a flexible approach on the question.

Although FOMC members aren't anxious about market disruption due to balance sheet shrinkage, some investors are.

In its minutes, the Fed said the impact of financial markets would be "limited".

First Bancorp (NASDAQ:FBNC): Positive Stock Sentiment
Wetherby Asset Management Inc. acquired a new position in First BanCorp. during the first quarter worth approximately $104,000. Basswood owns 0.09% invested in First Bancorp (NASDAQ:FBNC) for 78,755 shares. 43,300 are owned by Price T Rowe Associates Md.

"Fed members went back and forth on the state of the economy, with some agreeing that the drop in the unemployment rate is tinder for eventual inflation while others were less anxious", said Peter Boockvar, chief market analyst with The Lindsey Group, in a client note. In the press conference, Yellen said the system was created to be as orderly and predictable as possible, and that the Fed hoped it would be as exciting as "watching paint dry". The Fed won't meet after that until late September. Several committee members preferred to announce a start to the process within a couple of months, while others argued for delaying the decision until later in the year, to continue to judge the economy's progress.

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