Federal Reserve officials agree that they must retool their guidance on when to consider raising interest rates. Chair Janet Yellen’s task is to forge a consensus on the new message from their disparate views.
Donald Ratajczak , an economic consultant for Morgan Keegan & Co., and John Silvia , chief economist at Wells Fargo Securities LLC, said Federal Reserve officials will be monitoring the strength of the U.S. recovery. Fed officials, after a meeting in Washington today, maintained plans to buy $600 billion of Treasuries through June.
Treasury 30-year bonds fell, widening the gap between yields on the securities and five-year notes from the least since 2009, as investors embraced a strengthening economy amid Federal Reserve stimulus withdrawal.