US Stocks Hold Steady After Expectations Rise for the Federal Reserve to Raise Interest Rates
Traders lifted the odds of a near-term Fed hike to nearly 60% after Warsh said short-term rates may not be restrictive enough, CME Group data showed.
- On Friday, Federal Reserve Chair Kevin Warsh addressed the annual economic symposium in Jackson Hole, Wyoming, calling short-term interest rates the "predominant tool" for controlling inflation and supporting the job market.
- Warsh emphasized that he would be "hard pressed to describe broad financial conditions as restrictive," signaling current rates may not be high enough to tamp down inflation while preferring markets react to economic data rather than Fed guidance.
- Treasury yields zigzagged immediately after the speech, while traders raised the probability of a rate hike as soon as next month to nearly 46%, up from 35% a day earlier, according to CME Group data.
- On Wall Street, Gap jumped 15.4% after reporting stronger quarterly profit, while Marvell Technology fell 10.2% as analysts said optimism about its artificial-intelligence business was already "baked into" the stock price.
- The U.S. Treasury Department's recent bond buybacks complicate the outlook, as analyst Brian Jacobsen of Annex Wealth Management warned that Warsh's rate-focused approach could "collide" with Treasury's bond market interventions, limiting their effectiveness.
26 Articles
26 Articles
The Northern Virginia Daily
SooLeader.comUS stocks drift after expectations rise for the Fed to hike rates to get inflation under control
U.S. stocks are drifting while expectations rise for the Federal Reserve to hike interest rates soon to get the nation’s high inflation under control. The S&P 500 was flat Friday after flipping between modest gains and losses. The Dow Jones…
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…
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