Kansas City Fed Seyz Rates Will Keep Rising As Bonds Stage Comeback

A quick bit of economic news for our smarter readers . . .

Here's a local tie-in to big picture economic news and the return of a formerly stodgy asset class . . .

As JPMorgan Chase & Co.’s Bob Michele put it — “bonds are back” as higher yields make them attractive on that basis for the first time in a decade.

Yet while the Fed is talking about slowing down, it hasn’t done so yet, meaning it’s not clear at what level yields will stabilize. Goldman Sachs Group Inc. is forecasting 10-year yields at 4% or higher through 2024 as the Fed faces a long inflation fight.

That fits with warnings from Kansas City Federal Reserve Bank President Esther George, who said ample US savings could mean higher interest rates are needed to cool spending.

Read more via www.TonysKansasCity.com link . . .

Bloomberg: 'Bonds Are Back' on High Rates, Recession Fears