Stocks in the UK and Europe have had a muted open this morning. On Monday, Andrew Bailey, Governor of the bank of England, said interest rates could rise before the end of the year due to pressure from inflation. However, ECB President Christine Lagarde and Jerome Powell, chairman of the US Fed, both indicated yesterday that recent price pressure would be temporary. Powell said inflationary pressures remain elevated and “will likely remain so in coming months” but then fade. Christine Legarde speaks today at the ECB Forum on Central Banking.
US Treasury Yields have risen sharply over the last few days as markets anticipate the Fed tapering its asset purchasing program. A number of Fed officials are giving speeches this week and may provide further clues as to the timeline.
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