Yield Surge Makes Case for October Rate Pause -- Market Talk
Dow Jones2026/10/09 19:581557 ET - Rising market yields are already doing the heavy lifting for the Federal Reserve, BMO analysts say in a research note. The steady increase of nominal and real yields have done more to raise borrowing costs than another quarter-point hike could accomplish, the analysts say. Higher borrowing costs take time to filter through the broader economy, so the Fed has the footing to hold off on further policy adjustments at its upcoming meeting, they say. The FOMC's September rate hike already proved it wouldn't yield to political pressure from Trump, so it doesn't have to quickly hike again just to make a point, the analysts say. (dean.seal@wsj.com) (END) Dow Jones Newswires October 09, 2026 15:58 ET (19:58 GMT)
1557 ET - Rising market yields are already doing the heavy lifting for the Federal Reserve, BMO analysts say in a research note. The steady increase of nominal and real yields have done more to raise borrowing costs than another quarter-point hike could accomplish, the analysts say. Higher borrowing costs take time to filter through the broader economy, so the Fed has the footing to hold off on further policy adjustments at its upcoming meeting, they say. The FOMC's September rate hike already proved it wouldn't yield to political pressure from Trump, so it doesn't have to quickly hike again just to make a point, the analysts say. (dean.seal@wsj.com)
(END) Dow Jones Newswires
October 09, 2026 15:58 ET (19:58 GMT)
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