Reply #6: Treasuries Run Up on Fed Inflation Remark

[ozymandius]

CHICAGO (Reuters) - U.S. Treasury prices rose on Friday, boosted by comments from Dallas Fed President Robert McTeer that suggested the central bank would not raise rates for quite some time.

Speaking on CNNfn, McTeer said that U.S. inflation was still dormant and until it became a clear danger the Fed could maintain its current loose monetary policy.

Asked what the Fed meant by its commitment to keeping policy accommodative for a "considerable period," McTeer said: "When conditions change such that inflation looks to be a clear and present danger, then the considerable time is up."

story