Kitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
NEW YORK, Sept 21 - The Federal Reserve’s plans for a prolonged period of elevated interest rates could continue pressuring stocks and bonds in coming months, though some investors doubt the central bank will stick to its guns.
Elevated yields on Treasuries - seen as a risk-free alternative to equities because they are backed by the U.S. government - are also a headwind to stocks. The S&P 500 is up 15% year-to-date but has struggled to advance from late July’s high as the surge in yields accelerated. Still, it appeared that at least some part of the market was doubtful the Fed would stand firm on keeping rates as high as it projected - even though betting against the U.S. central bank’s hawkishness has mostly been a losing wager since policymakers began raising borrowing costs in March 2022.
Fed Chair Jerome Powell said a"solid" economy would allow the central bank to keep additional pressure on financial conditions with much less of a cost to growth and the labor market than in previous U.S. inflation battles. "Inflation is going in the right direction, but … there's a lot of headwinds" to growth, said David Norris, head of U.S. credit at TwentyFour Asset Management.
Of course, betting on a rate peak has backfired on investors several times in the past year, as stronger-than-expected economic growth forced markets to recalibrate views for a 2023 recession and push back expectations for how soon the central bank would cut borrowing costs.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Futures edge up as investors await Fed policy meet, Instacart debutKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Read more »
Full US government shutdown likely, could impact Fed -PIMCOKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Read more »
Markets on hold ahead of Fed, but UK data stirs rate pause talkKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Read more »
Fed projections to show if 'soft landing' is new baseline ... or baselessKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Read more »
Commercial real estate loan workouts: strategic approaches for the financial industryKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Read more »
Analysts react to Federal Reserve leaving interest rates unchangedKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Read more »