Fed's Chairman Jerome Powell Confirm It Will Maintain Easy-Money Policies

Federal Reserve Chairman Jerome Powell reiterated his intention to keep easy-money policies in place but provided no sign the central bank will seek to stem a recent rise in Treasury yields, prompting them to rise further.

Stocks also sold off on Mr. Powell’s remarks Thursday during an interview at The Wall Street Journal Jobs Summit. The appearance came a week after a jump in Treasury yields driven by forecasts of stronger U.S. economic growth and inflation this year, among other factors.

“Today we’re still a long way from our goals of maximum employment and inflation averaging 2% over time,” Mr. Powell said Thursday during the interview.

Some analysts said his latest remarks did little to ease investor fears about rising bond yields.

The yield on the 10-year Treasury note rose above 1.55% after Mr. Powell’s interview its highest level since before the pandemic up from 1.46% earlier Thursday and 0.92% at the beginning of the year.

Mr. Powell’s remarks came at his last scheduled public event before Fed policy makers meet on March 16-17. He said the central bank will maintain ultra-low interest rates until its employment and inflation goals have been met, and will continue hefty asset purchases until “substantial further progress” has been made.

• The Dow Jones Industrial Average lost 345.95 points, or 1.11%, to 30924.14 Thursday.
• The S&P 500 declined 51.25 points, or 1.34%, to 3768.47, the third consecutive session of declines.
• The Nasdaq Composite fell 274.28 points, or 2.11%, to 12723.47.