Richmond Federal Reserve Bank President Thomas Barkin stated on Thursday that he is hopeful that the United States is on the brink of completing its recovery from the coronavirus crisis, especially given that America’s recovery has outpaced most of the world countries. Barkin also noted that the inflation expectations and the business outlook are not pointing to persistent multi-year jump inflation, the current price pressures are part of a transitory inflation increase. The Fed official also pointed out that the overall economic growth can be compromised by the disruptions in supply chains, despite the speedy spending and consumer confidence recovery.
U.S. stocks rebound following rout, bond yields edge down
NEW YORK/LONDON (Reuters) – U.S. shares rebounded on Thursday after falling for three consecutive days and benchmark Treasury yields edged lower as investors snapped up technology stocks and shrugged off worries over rising prices, for now. By early morning, the Dow Jones Industrial Average rose 1.5%, the S&P 500 was up 1.4%, and the Nasdaq Composite jumped 1.3%. Yields on 10-year Treasuries, which had climbed 7 basis points overnight in the biggest daily rise in two months, edged lower in early trade to stand at 1.6744%. “We’re certainly oversold here, so remember our 5-percent maxim: buy every S&P 500 down 5 percent close after the first one,” said Nicholas Colas, co-founder of DataTrek Research.