Fed’s Powell says higher rates need to persist to affect Fed policy choices

By Michael S. Derby

NEW YORK (Reuters) – Federal Reserve Chairman Jerome Powell said Wednesday that market borrowing costs would need to be sustainably higher for that to bear on future central bank monetary policy choices.

Tighter financial conditions could bear on Fed actions if they are persistent and it “remains to be seen” if that will be the case. But he did add higher Treasury market yields “are showing through” to real world borrowing costs, Powell said at a press conference following the Federal Open Market Committee meeting.