The manager pro tem turned first to a discussion of financial market developments over the intermeeting period. U.S. financial conditions tightened over the period, largely reflecting an upward revision in investors' outlook for the path of the policy rate. Treasury yields climbed substantially, with most of the upward move reflected in real yields. Equity prices initially rose amid second-quarter earnings reports that were better than feared but later retraced those gains in response to the shifting policy outlook. Regarding international developments, yields in most advanced foreign economies (AFEs) also rose ... (full story)