Fed Officials Pledge More Rate Hikes as Treasury Yields Reach New Heights

The Federal Reserve is signaling that more interest rate hikes are on the horizon to combat inflation. This comes as Treasury yields reached new highs, with the benchmark 10-year Treasury hitting a 19-year high of 5.104%.

Federal Reserve Governor Michael Barr stated that 'further policy adjustments are likely to be needed' to reduce price increases. He noted that economic growth is strong and the labor market is solid, but inflation is above the Fed's 2 percent target.

Barr also highlighted increased risks to achieving the inflation target, while risks to the labor market have receded. Boston Federal Reserve President Susan Collins echoed this sentiment, saying she supported last week's rate hike and anticipated potential future moves of the kind.