Investors are concerned that higher interest rates might force a recession. This uncertainty surrounding future interest rate policy has exacerbated concerns about rising yields.īenchmark Treasury yields are now approaching the 5% level, raising worries about the impact on mortgage rates and consumer spending. He stated, "And there's really not much that the Fed's going to say that's going to change or clarify things." Stovall further elaborated on Powell's comments, suggesting that the Fed might not begin to cut rates until at least the beginning of the second half of the next year. Sam Stovall, the chief investment strategist at CFRA Research in New York, pointed out that the lack of clarity in Powell's statement was causing a reduction in investor confidence. Powell's remarks contradicted the prevailing market expectation that the Federal Reserve's rate-hiking cycle had come to an end. stock indexes responding by moving sharply lower. This statement sent shockwaves through the financial markets, with all three major U.S. Powell suggested that additional interest rate hikes might be necessary due to the resilience of the U.S. Treasury yields hit a 16-year high after comments made by U.S. stocks took a downturn, and the 10-year U.S. Cover Image Attribute: The file photo of the New York Stock Exchange.
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