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Worries about Fed policy create buying opportunities

Federal Reserve chair Janet Yellen is going out of her way to assure markets that the central bank is in no hurry to alter its easy-money ways – yet the bond market is worried about higher rates. Is there something here for investors to exploit?

Ms. Yellen testified before Congress on Wednesday, saying that she expects economic activity to rebound after growth of just 0.1 per cent in the first quarter. She also said that inflation should rise toward the Fed’s target of 2 per cent, suggesting worries of deflation are now fading.