Treasury yields retreat, Fed warns on keeping rates high for too long [Video]

U.S. Treasury bond yields were little changed on Wednesday after Federal Reserve Chair Jerome Powell warned that keeping interest rates elevated for too long could stunt economic growth.

The 10-year Treasury yield was roughly 2 basis point lower at 4.278%. The 2-year Treasury note yield was little changed at 4.626%.

Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.

Powell said Tuesday that the economy and labor market remain strong, despite some recent cooling.

“At the same time, in light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face,” he said in prepared remarks at Capitol Hill. “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.”

Powell added that policymakers remain resolved on their goal of bringing inflation down to …