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Text size Japan has had to intervene to support the sliding yen for the first time since 1998, even as it tries to keep its interest rates low. Akio Kon/Bloomberg The world has been hooked on cheap money for years. Now we’re witnessing what withdrawal looks like. Lifting interest rates from nil has produced a … Read more
The bond market is waiting for Federal Reserve officials to reveal how high they think interest rates will go. The reaction to that forecast will also have a profound impact on stocks, which have struggled as rates have risen in anticipation of a more aggressive Fed. The latest Fed forecast for a terminal rate — … Read more
With both U.S. stocks and bonds under pressure on Tuesday, some on Wall Street argue that investors are underestimating the possibility that the Fed might deliver a surprise 100 basis-point interest rate hike at the close of its two-day policy meeting on Wednesday. While fed-funds futures traders overwhelmingly anticipate a hike of 75 basis points, … Read more
The Federal Reserve isn’t trying to slam the stock market as it rapidly raises interest rates in its bid to slow inflation still running red hot — but investors need to be prepared for more pain and volatility because policy makers aren’t going to be cowed by a deepening selloff, investors and strategists said. “I … Read more
Desperate times call for desperate measures, and times are, arguably, increasingly desperate. The persistence of high inflation might force the Federal Reserve to resort to the biggest increase in a key U.S. interest rate in more than 40 years. After another dismal U.S. inflation report, economists at the brokerage Nomura Securities on Tuesday became the … Read more
As investors return from the long Labor Day weekend, they are likely to find the focus will fall squarely on central bankers in the week ahead. That could mean more volatility for both stocks and bonds. There is a dearth of earnings news and economic reports. Instead, investors are likely to more closely follow the … Read more
The Bank of Korea warned Tuesday of “increased volatility” as global markets brace for future hikes from the U.S. Federal Reserve. “There is a high chance of increased volatility whenever the U.S. Federal Reserve makes a policy rate decision and the global finance and foreign exchange market has to digest it,” BOK Governor Rhee Chang-yong, … Read more
Text size Apple shares were poised to extend losses on Monday. Dreamstime Major technology stocks such as Apple and Alphabet were poised for further losses Monday after Federal Reserve Chairman Jerome Powell said the central bank would stick with its plan to raise interest rates to fight inflation. Growth stocks are particularly vulnerable to higher … Read more
Federal Reserve Chairman Jerome Powell delivered a stern commitment Friday to halting inflation, warning that he expects the central bank to continue raising interest rates in a way that will cause “some pain” to the U.S. economy. In his much-anticipated annual policy speech at Jackson Hole, Wyoming, Powell affirmed that the Fed will “use our … Read more
Wharton business school professor Jeremy Siegel said Friday that the U.S. Federal Reserve does not need to hike more than 100 basis points because an economic slowdown is in sight. “I think we only need 100 basis points more,” Siegel said on CNBC’s “Squawk Box Asia.” “The market thinks it’s going to be a little … Read more