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Federal Reserve's Kocherlakota 'uneasy' about low longer-term rates

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A top Federal Reserve official said on Tuesday he was "uneasy" about the low long-term yields on Treasury bonds because it shows there are fewer safe assets for investors and it suggests rates could be persistently low in the future.

[NEW YORK] A top Federal Reserve official said on Tuesday he was "uneasy" about the low long-term yields on Treasury bonds because it shows there are fewer safe assets for investors and it suggests rates could be persistently low in the future.

Minneapolis Fed President Narayana Kocherlakota, speaking to reporters after a speech, added the US central bank would have to consider the bond-market reaction to an eventual Fed rate hike only to the extent that it affects the real economy.

REUTERS