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

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Two Federal Reserve officials have suggested that the central bank may leave interest rates unchanged at its next meeting in three weeks. That’s because a surge in long-term interest rates has made borrowing more expensive and could help cool inflation without further action by the central bank. Since late July, the yield, or rate, on the 10-year U.S. Treasury note has jumped from around 4% to about 4.8%, a 16-year high. The run-up in the yield has inflated other borrowing costs and raised the national average 30-year mortgage rate to 7.5%, a 23-year high. Business borrowing costs have also risen as corporate bond yields have accelerated.