JPMorgan and Apollo Urge Inflation Focus for Federal Reserve
· Business · LiveMint, Bloomberg
Investors from JPMorgan Chase & Co., Apollo Global Management Inc., and Morgan Stanley are urging Federal Reserve Chairman Kevin Warsh to deliver a strong rebuke of high inflation during his upcoming speech in Jackson Hole, Wyoming. Market participants argue that a firm commitment to price stability could lower 30-year US Treasury yields, which recently hit their highest level since 2007. Persistently high borrowing costs have weighed heavily on the US housing market, private equity firms, and small businesses as inflation has remained above the Fed's 2% target for the past five years. The 30-year Treasury yield hovered around 5.19% in early Friday trade following last week's peak of 5.34%. Analysts suggest that clear anti-inflation messaging from Warsh would reduce the term premium demanded by investors holding long-term US debt.
Why it matters
A strong anti-inflation stance from the Federal Reserve could lower long-term borrowing costs for US businesses and consumers, easing pressure on the broader financial markets.
Read the original report — LiveMint
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