Dollar slides as bond market signals rising inflation angst

Dollar slides as bond market signals rising inflation angst

The dollar retreated and a key portion of the US government bond market flashed inflation warning signs amid concern that the Federal Reserve’s new policy framework could erode the appeal of US assets. Fed chair Jay Powell on Thursday revealed enhanced flexibility to allow the inflation rate to push past the central bank’s 2 per cent target. The tweak is designed to allow more leeway to support the economy in the wake of the coronavirus shock. But for markets, it probably means lower benchmark interest rates for longer and a potential pick-up in long dormant inflation. Jan Hatzius, chief US... Read More