The U.S. central bank left interest rates unchanged on Wednesday, in line with market expectations.
Broadly speaking, higher rates for longer could be an unwelcome turn of events for stocks and bonds.
The S&P 500 lost 0.94% on Wednesday, while the yield on two-year Treasuries, which reflect interest rate expectations, hit 17-year highs.
Futures tied to the Fed’s policy rate late Wednesday showed traders were betting the central bank would ease monetary policy by a total of nearly 60 basis points next year, bringing interest rates to about 4.8%.
Signs of wobbling growth could bolster the case for the central bank to cut rates far sooner than it had projected.
Persons:
Sarah Silbiger, Josh Jamner, Gennadiy Goldberg, Jerome Powell, …, David Norris, John Madziyire, ”, Norris, Davide Barbuscia, David Randall, Herbert Lash, Lewis Krauskopf, Ira Iosebashvili, Stephen Coates
Organizations:
Eccles Federal Reserve, Washington , D.C, REUTERS, Federal, U.S, Treasury, U.S ., Clearbridge Investments, TD Securities USA, TwentyFour Asset Management, Thomson
Locations:
Washington ,, U.S