Fed Talk Spooks The Markets
There’s growing speculation the Fed thinks growth is strong enough to justify raising rates as soon as June, and that’s spooking the market—US stocks are falling as the Treasury yield curve drops to its narrowest point since 2007.
The S&P 500 fell after two Fed officials suggested it’s time for higher rates, and global equities are struggling to push gains after reaching a four-month high on April 20 as investors hold their breath and wait for the Fed to make its decision, Bloomberg reports.
“It seems the Fed speak is spooking equities,” says Yousef Abbasi, global market strategist at JonesTrading Institutional Services, after Fed officials recently said we could see rate hikes in the near future. [Bloomberg]