"Federal Reserve Chair Powell's Balanced Approach Amidst Risks to 10-Year Treasury Yield"

Federal Reserve Chair Jerome Powell struck a balance in his remarks at the Economic Club of New York as the 10-year Treasury yield climbed to a new 16-year high. Powell acknowledged the recent run of strong economic data but committed to proceeding carefully with tightening. He attributed the rise in yields to term premiums and a heightened focus on fiscal deficits. Powell also discussed the new normal for interest rates, suggesting they may end up somewhere between the old normal and the ultra-low era. The rising 10-year yield could mean less need for rate hikes, and markets currently see low odds of a rate hike in November. Concerns about oversupply of Treasuries and the potential impact of higher long-term interest rates on the economy are also highlighted.