2 Federal Reserve officials say spike in bond yields may allow central bank to leave rates alone

The Federal Reserve may leave interest rates unchanged at its next meeting in three weeks, according to two central bank officials, citing a surge in long-term interest rates making borrowing more expensive. The activity could help cool inflation without further action by the Fed, they say.

Officials pointed to the 10-year Treasury note that’s up to about 4.8%, a 16-year high, which has inflated other borrowing costs and raised the national average 30-year mortgage rate to 7.5%, a 23-year high, according to Freddie Mac.

Business borrowing costs have also risen as corporate bond yields have accelerated.

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