Mary Daly says Treasury bond buybacks’ impact on Fed policy remains unclear

Federal Reserve Bank of San Francisco President Mary Daly said it was too early to assess how expanded U.S. Treasury liquidity support for long-term government bonds could affect Federal Reserve policy. Treasury Secretary Yellen said buybacks may exceed the announced $4 billion and that 30-year bond liquidity was particularly poor, while Daly emphasized the Fed’s commitment to returning inflation to 2% and market participants saw no current need for Fed intervention.

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