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Treasury yields jump between meetings; chair says markets are 'playing the ball, not the referee'
Summary
The chair said nominal and real Treasury yields have risen materially since the last FOMC meeting and described market participants as responding directly to incoming information rather than to Fed forward guidance.
The chair told reporters that "nominal and real yields are materially higher across the treasury curve" since the previous meeting and said the increase ranks among the most significant in the last two decades. He said market participants are "learning to play the ball, not the referee," meaning markets are reacting to economic developments rather than to Fed commentary.
The chair and reporters discussed whether those market moves substitute for Fed action, with the chair saying markets are an informative input but not a determinative guide to policy. He emphasized the Fed will continue to monitor market signals and other data when choosing future policy steps.
