US Stocks Hold Steady After Expectations Rise for the Federal Reserve to Raise Interest Rates
Kevin Warsh said short-term rates may not be restrictive enough, while the 10-year Treasury yield rose to 4.69% after his speech.
- On Friday, Federal Reserve Chair Kevin Warsh told global investors at the annual economic symposium in Jackson Hole, Wyoming, that inflation remains too high, calling short-term interest rates 'the predominant tool' for controlling prices.
- Warsh faced mounting pressure to clarify whether his inflation rhetoric would translate into Fed action, as the central bank has held rates steady since December despite inflation remaining well above the 2% goal.
- Bond markets reacted sharply as Warsh stated 'I would be hard pressed to describe broad financial conditions as restrictive,' with the two-year Treasury yield jumping to 4.29% from 4.22% immediately after the speech.
- Traders increased rate-hike bets to nearly 46% probability for next month from 35% a day earlier, according to CME Group, as yields zigzagged following Warsh's speech despite Treasury Department intervention last week.
- U.S. stocks held relatively steady with The Dow Jones Industrial Average up 0.1% and the Nasdaq composite down 0.2%, while Gap surged 15.4% on strong earnings and Marvell Technology fell 7% as optimism was already 'baked into' its 184% year-to-date surge.
20 Articles
20 Articles
Yakima Herald-Republic
US stocks rise with expectations for the Fed to hike rates to get inflation under control
U.S. stocks are ticking higher 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 rose 0.4% Friday. The Dow Jones Industrial Average added 208 points, and…
In his speech, Kevin Worth says he is "impressed by the overall performance" of the world's largest economy, "which appears to have strengthened."
Inflation in America is still too high, and if it remains so, there is work to be done for the FED. That is what the chairman of the US central banks, Kevin Warsh, said in a speech in Jackson Hole. With this, he hints at possible interest rate hikes in the coming months. Economists and analysts on Wall Street had hoped for a clear signal on how the FED intends to tackle inflation. Warsh says that the focus must be on inflation, but he is keepin…
Ottumwa Courier
US stocks hold steady, while the bond market zigzags after key speech by the Fed's chairman
The U.S. stock market is holding relatively steady after the Federal Reserve's chairman said in a highly anticipated speech that inflation remains too high. The S&P 500 was virtually unchanged in Friday morning trading. The Dow Jones Industrial Average added…
US stocks hold steady after expectations rise for the Federal Reserve to raise interest rates
The U.S. stock market is holding relatively steady, and expectations are building in the bond market for the Federal Reserve to hike interest rates soon to get the nation’s high inflation under control.
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