U.S. short-term Treasury yields rose during a closely watched speech by Federal Reserve Chair Wosh, who said the central bank must contain consumer-price increases and return inflation to its clear, fixed 2% target. The remarks eased some market concerns about the Fed's ability to combat inflation, while triggering a selloff in short-dated Treasuries and gains in longer-dated debt. The two-year yield increased 5 basis points to 4.28%, while the 30-year yield declined 1 basis point to 5.19%. Both moves indicated that markets saw a possibility of higher short-term interest rates. Traders have questioned Wosh's policy stance since his first news conference in June, when he adopted a hawkish position by emphasizing the need to reduce inflation. U.S. inflation has remained above the Fed's 2% target since the global economy reopened from the pandemic in 2021. The Fed again left rates unchanged in July, and Wosh did not indicate whether it might raise rates this year. Long-term Treasury yields subsequently rose sharply as traders demanded greater returns to compensate for the risk of worsening inflation. On Friday, Wosh said inflation had not slowed meaningfully and that policymakers still had work to do unless they became confident that price pressures were improving.