The Bond Market Prepares for a Hike to Interest Rates, While US Stocks Drift Lower
Traders raised the odds of a near-term rate hike to nearly 58% after Warsh said short-term interest rates remain the Fed’s main tool, CME Group data showed.
- On Friday, investors increased bets that the Federal Reserve will hike interest rates soon to control high inflation, following Chairman Kevin Warsh's first speech as Fed chair at an economic symposium in Jackson Hole, Wyoming.
- Warsh signaled that "short-term interest rates are the predominant tool" for controlling inflation, intending to let incoming economic data drive market reactions rather than Fed guidance alone.
- Traders responded by raising the probability of a rate hike next month to nearly 58%, while the 10-year Treasury yield climbed to 4.70% from 4.67% late Thursday.
- U.S. stocks dipped on the news, with the Nasdaq composite slipping 0.5% and Marvell Technology falling 7.9% as analysts noted AI optimism may be fully priced in.
- Policymakers face a difficult balancing act, as higher rates could curb inflation but potentially slow economic growth, a tension President Donald Trump has highlighted by advocating for lower borrowing costs.
15 Articles
15 Articles
How major US stock indexes fared Friday 8/28/2026 – WTOP News
The bond market swung as investors built bets that the Federal Reserve may hike interest rates soon to get the nation’s high inflation under control. U.S. stocks, meanwhile, dipped Friday but not by much after economists said a speech by Chairman Kevin Warsh helped strengthen faith that the Fed will do what’s needed to bring...
The Blade
Washington TimesThe bond market prepares for a hike to interest rates, while U.S. stocks drift lower
NEW YORK — The bond market swung Friday as investors built bets that the Federal Reserve may hike interest rates soon to get the nation’s high inflation under control. U.S. stocks, meanwhile, dipped but not by much after economists said a speech by Chairman Kevin Warsh helped strengthen faith that the Fed will do what’s needed to bring inflation down, even if it causes pain for the economy in the short term.
McAlester News-Capital
The Seattle TimesHow major US stock indexes fared Friday 8/28/2026
The bond market swung as investors built bets that the Federal Reserve may hike interest rates soon to get the nation’s high inflation under control. U.S. stocks, meanwhile, dipped Friday but not by much after economists said a speech by…
MONEY & BUSINESS: US stocks rise with expectations for the Fed to hike rates to get inflation under control – One America News Network
By STAN CHOEUpdated 8:46 AM PDT, August 28, 2026 Options trader Matthew Hefter works on the floor of the New York Stock Exchange, Thursday, Aug. 27, 2026, in New York. (AP Photo/Yuki Iwamura) NEW YORK (AP) — U.S. stocks are ticking higher Friday as expectations rise for the Federal Reserve to hike interest rates soon to get the nation’s high inflation under control. The S&P 500 added 0.4% and pulled closer to its all-time high set earlier this m…
The bond market prepares for a hike to interest rates, while US stocks drift lower
NEW YORK (AP) — The bond market swung Friday as investors built bets that the Federal Reserve may hike interest rates soon to get the nation’s high inflation under control. U.S. stocks, meanwhile, dipped but not by much after economists said a speech by Chairman Kevin Warsh helped strengthen faith that the Fed will do what’s needed to bring inflation down, even if it causes pain for the economy in the short term.
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