Stock Market Today: Indexes Wobble After Powell Signals Further Rate Pause
Recent volatility in U.S. Treasury yields is not about expectations of higher inflation or short-term moves in the federal-funds rate over the next year or two, according to Fed Chair Jerome Powell. "It's really happening in [term premiums](https://www.wsj.com/finance/investing/wall-streets-latest-
According to Fed chair Jerome Powell, the recent volatility in U.S. Treasury rates is not due to expectations of higher inflation and short-term movements in the federal funds rate in the next year or so.
He said that the term premiums are the compensation for holding securities over a longer period of time. It is not primarily a function of market interest rates near-term, he explained.
Analysts and markets may also be influenced by the resilience of the economy to higher interest rate, the increased focus on fiscal deficits and quantitative tightening as well as the changing correlation between bonds, and equity.