Wall Street continues to believe Trump on tax relief

Fed Chairman Janet Yellen dismissed the possibility the central bank to respond with increases in interest rates at each change of tax and spending plans of President Donald Trump. She stated that such changes will be made only if based on demand and inflation targets are under threat.

Fed Chairman in Boston Eric Rosengren said the central bank may need to raise interest rates more aggressively than predicted three changes for this year. He added that he expects the least implementation of the forecasts from December, which were for three increases in interest rates in each of the next three years. According to Rosengren GDP will be higher as unemployment has fallen below equilibrium levels.

Philadelphia Fed Chairman Patrick Harker reiterated that he expects the Fed to continue with interest rate hikes. According to him, there will be three changes this year. When achieved targets for employment and inflation are almost reached, the question that will excite the Fed will continuing of the economic growth.

Bond yields in the US increased again over the entire curve because of the good economic data and speeches by Fed officials that increased bets on markets raise rates in March. Yields on 10-year bonds is now near the highest levels of close of 2017.