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☆ Fed's Powell says balance sheet rundown will proceed without change for now
▼ + stars: | 2023-11-01 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

Federal Reserve Board Chair Jerome Powell answers a question at a press conference following a closed two-day meeting of the Federal Open Market Committee on interest rate policy at the Federal Reserve in Washington, U.S., November 1, 2023. REUTERS/Kevin Lamarque Acquire Licensing RightsNEW YORK, Nov 1 (Reuters) - Federal Reserve Chair Jerome Powell said on Wednesday that he sees no reason to change the current drawdown of the central bank's still-massive balance sheet. The rate-setting Federal Open Market Committee "is not considering changing the pace of balance sheet runoff. While shrinking Fed holdings may have a small impact on real world borrowing costs, "I think it’s hard to make a case that reserves are even close to scarce at this point." Reuters GraphicsFed officials have said repeatedly that the balance sheet drawdown effort complements rate rises and runs in the background.

Persons: Jerome Powell, Kevin Lamarque, Powell, it's, Loretta Mester, Michael S, Andrea Ricci Organizations: Federal, Committee, Federal Reserve, REUTERS, Fed, Reuters Graphics Reuters, Reuters Graphics Fed, Reuters Graphics, Cleveland Fed, Thomson Locations: Washington , U.S

☆ Fed's reverse repo facility drawdown looms large in balance sheet debate
▼ + stars: | 2023-10-31 | by ( Michael S. Derby | ) www.reuters.com time to read: +6 min

Inflows have dropped sharply in recent months to around $1 trillion in the face of the Fed's aggressive policy tightening underway since last year. Fed officials, for their part, have said repeatedly they’ve got a lot of room to cut their holdings of Treasuries and mortgage-backed securities, a process that complements Fed rate increases. So far, reverse repos have “come down very smoothly,” Lorie Logan, president of the Dallas Fed said earlier this month. In his view, if reverse repos stopped contracting that could become a meaningful sign liquidity levels were getting tight enough for the Fed to change gears. "We still have a very large balance sheet" so the balance sheet cuts can likely continue over the next year and half to two years, she said, adding when it comes to getting to the finish line, "it's going to take a while."

Persons: they’ve, ” Lorie Logan, Logan, “ I’ve, Wells Fargo, Roberto Perli, Lou Crandall, Wrightson ICAP, Crandall reckons, Loretta Mester, Michael S, Dan Burns, Andrea Ricci Organizations: Fed, Dallas Fed, New York Fed, Reuters Graphics Reuters, Cleveland Fed, Thomson Locations: Treasuries, Wells

☆ NY Fed to tackle weather-related risks in upcoming research barrage
▼ + stars: | 2023-10-25 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

[1/3] A woman passes by The Federal Reserve Bank of New York in New York City, U.S., March 13, 2023. The New York Fed foray into the topic comes as the central bank has retreated from the climate issue after facing heat from some members of Congress. Meanwhile, the central bank formally joined in late 2020 with other major central banks in efforts to shore up the financial system against climate-related disruptions. Some in Congress have seen the Fed’s climate work as a sign of a politicized central bank. That said, the Fed has not ruled out thinking about how climate disruptions affect the full measure of the economy.

Persons: Brendan McDermid, there's, Jerome Powell, Loretta Mester, John Williams, ” Williams, Michael S, Andrea Ricci Organizations: Federal Reserve Bank of New, REUTERS, “, New York Fed, Fed, Cleveland Fed, Queens College, Thomson Locations: Federal Reserve Bank of New York, New York City, U.S, New York, New Jersey, Connecticut, Puerto Rico, Congress

☆ Asia markets set to fall ahead of regional inflation readings and South Korea growth figures
▼ + stars: | 2023-10-23 | by ( Lim Hui Jie | ) www.cnbc.com time to read: 1 min

Cleveland Federal Reserve President Loretta Mester said Friday she expects that interest rates likely won't be raised much more from here, if at all. "Regardless of the decision made at our next meeting, if the economy evolves as anticipated, in my view, we are likely near or at a holding point on the funds rate as we accumulate more information on economic and financial developments and assess the effects of the tightening in financial conditions that has already occurred," Mester said in remarks delivered for a speech in New York. The central bank official added that she agrees with Federal Open Market Committee estimate in September that another rate hike could come before the end of 2023, but noted that handicapping such moves is difficult now. Mester is not a voting member of the FOMC this year but will vote in 2024.

Persons: Loretta Mester, Mester, — Jeff Cox Organizations: Cleveland Federal, Open Locations: New York

☆ Fed's Mester says Fed at or near peak for interest rate target
▼ + stars: | 2023-10-20 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

Mester noted Fed forecasts released at the September meeting eyed another increase in what is currently a federal funds target rate range of between 5.25% and 5.5% by the end of the year, and then to hold rates steady at high levels for an extended period. “This is consistent with my own reading of economic conditions, the outlook, and the risks to the outlook,” she said. Mester, who does not have a vote on the Federal Open Market Committee this year, also noted that the outlook for policy can change. In her remarks, Mester said inflation pressures are coming down but remain too high. Mester also said that if the recent surge in bond yields is sustained it should help moderate demand, which aligns with Fed goals.

Persons: Loretta Mester, ” Mester, Mester, ”, Michael S, Andrea Ricci Organizations: Federal Reserve Bank, Cleveland, Federal, Fed, Thomson

A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. Comments from Philadelphia Fed President Patrick Harker and Cleveland Fed President Loretta Mester will also be on investor radar during the day as Fed officials will be entering a media blackout starting Saturday ahead of their meeting on Nov 1. The 10-year Treasury yield , which briefly crossed 5% on Thursday for the first time since July 2007, were last at 4.9392%. ET, Dow e-minis were down 78 points, or 0.23%, S&P 500 e-minis were down 13 points, or 0.3%, and Nasdaq 100 e-minis were down 61 points, or 0.41%. Shares of solar firms Enphase Energy (ENPH.O) and First Solar (FSLR.O) were also down 15.6% and 5.2%, respectively.

Persons: Brendan McDermid, Jerome Powell, Powell, Jay Powell, Michael Hewson, Lorie Logan, Patrick Harker, Loretta Mester, CME's, Shubham Batra, Shashwat Chauhan, Arun Koyyur, Vinay Dwivedi Organizations: Wall, REUTERS, Dow, Nasdaq, Treasury, Federal, Economic, of New, CMC, Fed Bank of Dallas, Market, BofA, Research, U.S, Philadelphia Fed, Cleveland Fed, Traders, American Express, Investors, Dow e, Enphase Energy, Thomson Locations: New York, U.S, of New York, East, Israel, Gaza, Bengaluru

☆ 10-year Treasury yield retreats after rising to 5% in previous session
▼ + stars: | 2023-10-20 | by ( Katrina Bishop | ) www.cnbc.com time to read: +1 min

During the previous session, 10-year Treasury yields topped 5% for the first time since July 20, 2007, after four consecutive days of climbs. The yield on the 10-year Treasury fell to 4.9499% by 2 a.m. ET, down around 4 basis points. The 2-year Treasury yield was trading around 5.1418%, down around 3 basis points. No major data points or Treasury auctions are scheduled.

Persons: Jerome Powell, Powell, Lorie Logan, Patrick Harker, Loretta Mester Organizations: Federal, Economic, of New Locations: of New York

☆ US stocks fall as traders assess rate outlook after key bond yield hits 5%
▼ + stars: | 2023-10-20 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

US stocks dropped Friday as the 10-year Treasury yield pulled back but remained close to 5%. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . The 10-year Treasury dipped by about seven basis points to 4.912%, only down slightly from a day earlier when the benchmark bond yield touched 5% for the first time since 2007. AdvertisementAdvertisementA day earlier, Fed chair Jerome Powell hinted that rates could stay unchanged at the November meeting, but that doesn't mean future hikes are out of the question.

Persons: Brent, —, Loretta Mester, Mester, Jerome Powell Organizations: Treasury, Cleveland Fed, Service, Nasdaq, Dow Jones Industrial, Federal Reserve, Manhattan Institute, Dow Jones Locations: Israel, Gaza

☆ Cleveland Fed Pres. Loretta Mester: The Fed funds rate is at or near the hold level
▼ + stars: | 2023-10-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCleveland Fed Pres. Loretta Mester: The Fed funds rate is at or near the hold levelCNBC's Steve Liesman joins 'Halftime Report' to discuss comments from Cleveland Fed President Loretta Mester detailing her support for an additional Fed rate, slow trend growth expectations for next year, and the Fed funds rate nearing its hold level.

Persons: Pres, Loretta Mester, Steve Liesman Organizations: Cleveland Fed

☆ Morning Bid: Bond squeeze abates as Middle East war in focus
▼ + stars: | 2023-10-20 | by ( ) www.reuters.com time to read: +5 min

A street sign for Wall Street hangs in front of the New York Stock Exchange May 8, 2013. Dallas Fed cheif Lorie Logan added overnight that recent data and bond yield moves gave the central bank space. Reactions in the market were curious, however, with implied Fed policy rates in the futures market and two-year Treasury yields easing back even as 10-year yields chomped at the 5% bit. The resulting further disinversion of the yield curve to show the gap between two and 10-year yields at its lowest in a year is some testament to that. But with another nervous weekend around the Israel-Gaza war ahead, when markets are closed or illiquid, Friday trading has shifted the focus back to short-term safety hedges.

Persons: Lucas Jackson, Mike Dolan, Jerome Powell's, Powell, Lorie Logan, Huntington, Loretta Mester, Patrick Harker, Joe Biden, Charles Michel, Ursula von der Leyen, Elaine Hardcastle Organizations: New York Stock Exchange, REUTERS, Treasury, Atlanta Federal, Dallas Fed, Bank of Japan, L'Oreal, American Express, Interpublic, Schlumberger, Cleveland Federal, Philadelphia Fed, European Council, European Commission Reuters Graphics Reuters Graphics, Reuters Graphics Reuters, Thomson, Reuters Locations: U.S, Israel, Gaza, Europe, China, Comerica, Huntington Bancshares, Washington

☆ Morning Bid: Bonds haunted by uncertainties old and new
▼ + stars: | 2023-10-20 | by ( ) www.reuters.com time to read: +3 min

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsA look at the day ahead in European and global markets from Tom WestbrookIt's looking like the worst week of another bad year for bonds. Curiously, the dollar hasn't moved higher with the latest leap in yields, perhaps because currency traders see recession in the offing. Fed Chair Jerome Powell said little that markets didn't already know on Thursday, but in keeping his options open he kept the pressure on bonds. "A range of uncertainties, both old and new, complicate our task of balancing the risk of tightening monetary policy too much against the risk of tightening too little," he said.

Persons: Brendan McDermid, Tom Westbrook It's, Brent Donnelly, Jerome Powell, Joe Biden, Israel, Fed's Mester, Harker, Tom Westbrook, Edmund Klamann Organizations: New York Stock Exchange, REUTERS, Spectra Markets, MSCI's, Bank of Japan, North America ., Thomson Locations: New York City, U.S, New York, MSCI's Asia, Japan, Gaza, China, London, North America

☆ Israel-Hamas war risks further deglobalization and inflation
▼ + stars: | 2023-10-15 | by ( Bryan Mena | ) edition.cnn.com time to read: +8 min

Washington, DC CNN —The global economy is facing tremendous uncertainty from the war between Hamas and Israel in the Middle East, on top of the ongoing war between Russia and Ukraine. They say Israel’s declaration of war against Hamas could be yet another catalyst for deglobalization, though the extent of that is still up in the air. If deglobalization does get exacerbated, what would that mean for inflation and monetary policy, globally? With deglobalization, you get a global economic environment that’s less competitive, and when there’s less competition, that is ultimately inflationary, causing prices to rise. Over the Covid era, China shut down production, disrupting the global supply chain, so deglobalization would bring some production back within US borders.

Persons: Wells, Bell, Brendan McKenna, that’s, Trump, there’s, Hanna Ziady, we’ve, ”, Avi Hasson, Patrick Harker, John Williams, Tom Barkin, Michelle Bowman, Tesla, Christopher Waller, Lisa Cook, Jerome Powell, Austan Goolsbee, Michael Barr, Raphael Bostic, Loretta Mester Organizations: CNN Business, Bell, DC CNN, Trump, Hamas, Nation Central, Philadelphia Fed, US Commerce Department, Federal Reserve, National Association of Home Builders, China’s National Bureau of Statistics, Procter & Gamble, United Kingdom’s, National Statistics, American Airlines, US Labor Department, Federal, Fed Locations: Washington, Israel, Russia, Ukraine, China, Wells Fargo, Gaza, deglobalization, United States, Mexico, US, Tel Aviv, New York

☆ Fed's Mester: Strong jobs data do not change underlying view on hiring
▼ + stars: | 2023-10-06 | by ( Michael S. Derby | ) www.reuters.com time to read: +2 min

"With this one report, [the data] continues to say it's a strong labor market, but it is getting a little bit less tight than we saw before," Mester said in an interview on CNN International. Mester spoke to the television channel following the release of the September jobs report, which showed the U.S. added a bigger-than-expected 336,000 jobs last month and upwardly revised the prior month's job gain, with a steady 3.8% unemployment rate. The strength of the jobs data renewed bond market worries about additional Fed rate hikes which had receded among many investors. Several economists noted the softening earnings data in the report, evidence that inflation pressures continued to ebb, reducing pressure on the Fed to hike rates further. "What we've seen in the economy so far is that it's been a very resilient economy," Mester said, adding "economic growth has been strikingly strong and yet we're still making progress on inflation."

Persons: Loretta J, Mester, Jim Urquhart, Loretta Mester, it's, Michael S, Diane Craft, David Gregorio Our Organizations: Federal Reserve Bank of Cleveland, Jackson, REUTERS, Federal Reserve Bank, Cleveland, CNN International, Fed, Derby, Thomson Locations: Jackson , Wyoming, U.S

☆ Bond rout won't end Fed balance sheet cuts, but endgame bubbling into view
▼ + stars: | 2023-10-06 | by ( Michael S. Derby | ) www.reuters.com time to read: +5 min

Since June 2022, the Fed has allowed more than $1 trillion of bonds to mature from its portfolio, including roughly $840 billion of Treasuries. QT drains liquidity from the banking system, reducing bank reserves parked at the Fed and cash stashed in its reverse repo facility. Others believe money market rates will start to move up in ways suggesting the system is short of cash. A New York Fed report in April projected an end to QT around the middle of 2025. A survey of major banks by the New York Fed released in August eyed an end to QT in mid-2024.

Persons: it's, ”, Kathy Bostjancic, Bostjancic, Goldman Sachs, Loretta Mester, “, Austan Goolsbee, Mary Daly, Michael Barr, Michael Cloherty, Mark Cabana, ” Cabana, Cabana, Michael S, Ann Saphir, Dan Burns, Andrea Ricci Organizations: Goldman Sachs, Federal Reserve, Silicon Valley Bank, Fed, Treasury, Reuters Graphics Reuters, Cleveland Fed, Bloomberg, Chicago Fed, San Francisco Fed, UBS, Bank Policy Institute, New York Fed, Bank of America, Daily, Derby, Thomson Locations: Silicon, Washington

Although longer-dated U.S. Treasury yields eased from 16-year highs on Wednesday, investors remain concerned that the elevated levels may pressure equities. Worries about U.S. government spending and its ballooning budget deficit have added to uncertainty around the interest rates trajectory, contributing to a steep selloff that have caused a rout in Treasury prices and a spike in yields. The S&P 500 and the tech-heavy Nasdaq lost around 5% and 6% last month as yields spiked. Traders put the chance of interest rates remaining unchanged in November and December at 80% and 63%, respectively, according to CME's FedWatch tool. ET, Dow e-minis were down 92 points, or 0.28%, S&P 500 e-minis were down 10.5 points, or 0.24%, and Nasdaq 100 e-minis were down 27.75 points, or 0.19%.

Persons: Brendan McDermid, Janet Mui, Loretta Mester, Neel Kashkari, Richmond's Thomas Barkin, Mary Daly, Michael Barr, Kevin McCarthy, Steve Scalise, Jim Jordan, Joe Biden, VinFast, Ankika Biswas, Shashwat Chauhan, Shounak Dasgupta Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Treasury, RBC Brewin, Apple, Traders, Dow e, Federal, Democratic, Rivian, EV, Chevron, Exxon Mobil, Occidental Petroleum, Thomson Locations: New York City, U.S, Minneapolis, Bengaluru

☆ Morning Bid: A bond bounce, or a bull trap?
▼ + stars: | 2023-10-05 | by ( ) www.reuters.com time to read: +2 min

[1/3] Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt, Germany July 29, 2015. REUTERS/Remote/Pawel Kopczynski/File photo Acquire Licensing RightsA look at the day ahead in European and global markets from Tom WestbrookRelief extended from Wall Street to Marunouchi on Thursday, with bond yields and the dollar down further and stock markets stabilising. A cooler-than-expected U.S. private payrolls report and Wednesday's 5% drop in crude oil prices have helped. The oil slump was particularly noteworthy as the biggest in more than a year, pushing the price below where it was a year ago. The yen has also risen to the strong side of 149-per-dollar, giving traders something of a break from white-knuckling uncertainty over possible intervention by Japan.

Persons: DAX, Westbrook, ECB's, Fed's Kashkari, Daly, Mester, Tom Westbrook, Edmund Klamann Organizations: REUTERS, Treasury, Friday's, Thomson Locations: Frankfurt, Germany, Marunouchi, Japan, China, Asia, South Korea, Philippines, Friday's U.S, Barr

The collective impact of higher rates across the economy could also weaken the government's own finances. With borrowing rates high and inflation still relatively elevated, consumers, who drive about 70% of economic growth, are expected to spend more cautiously. “Those tighter, higher rates will have an impact on the economy.”Financial analysts point to several reasons for the rapid increase in lending rates. Overseas buyers have reduced their purchases, thereby forcing rates higher to attract buyers. “All of that is driving these fears of higher rates, and no one knows when it’s going to stop,” said Gennadiy Goldberg, head of US rates strategy at TD Securities.

Persons: Kevin McCarthy, Goldman Sachs, Goldman, Freddie Mac, Loretta Mester, ” Mester, it’s, ”, Gennadiy Goldberg, Benson Durham, Piper Sandler, Durham, Jerome Powell, ‘, we’re, ’ ”, Nancy Vanden Houten, David Page Organizations: WASHINGTON, United Auto Workers, Representatives, Republican, Treasury, Federal Reserve Bank of Cleveland, ”, Fed, Treasury Department, TD Securities, Oxford Economics, AXA Locations: U.S, ’ ” Durham, London

☆ Morning Bid: Nervy bond bounce on soft jobs and oil
▼ + stars: | 2023-10-05 | by ( ) www.reuters.com time to read: +5 min

[1/2] A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. Although both oil and bond yields calmed somewhat overnight, U.S. crude plunged by more than $5 per barrel on Wednesday. The tentative bond bid and shifting interest rate picture stopped the rot in stock markets too, with Wall St stocks rallying on Wednesday and the Nasdaq (.IXIC) staging its biggest daily gain since August. But in a sign of the nervousness, European stock markets stalled again and Wall St futures were back in the red. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Brendan McDermid, Mike Dolan, Kevin McCarthy, Michael Barr, Mary Daly, Thomas Barkin, Loretta Mester, Lamb Weston, Christina Fincher Organizations: New York Stock Exchange, REUTERS, Nasdaq, Wall, Metro Bank, U.S, Federal, San Francisco Fed, Richmond Fed, Cleveland Fed, Treasury, Brands, Constellation Brands, Reuters, Thomson Locations: New York City, U.S, Wall, York

☆ Yen cowers near 150 as intervention chatter runs rife
▼ + stars: | 2023-10-04 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

[1/3] Japanese yen and U.S. dollar banknotes are seen with a currency exchange rate graph in this illustration picture taken June 16, 2022. Japanese authorities last year intervened to prop up the yen for the first time since 1998. Other currencies similarly fell against the yen in the previous session, with the euro losing more than 1.5% to a low of 154.39 yen. Sterling edged 0.03% lower to $1.20745, languishing near the previous session's close to seven-month low of $1.20535. Meanwhile, Cleveland Fed President Loretta Mester said she is open to raising interest rates again.

Persons: Florence Lo, James Malcolm, Masato Kanda, Janet Yellen, Rodrigo Catril, Raphael Bostic, Loretta Mester, Rae Wee, Sam Holmes Organizations: U.S, REUTERS, Rights, UBS, Tokyo, Treasury, Sterling, National Australia Bank, Atlanta Fed, Cleveland Fed, New Zealand, Reserve Bank of New Zealand, Thomson Locations: Rights SINGAPORE, Asia, Washington, Japan

☆ Yen cowers near 150 as Japanese intervention chatter runs rife
▼ + stars: | 2023-10-04 | by ( Rae Wee | ) www.reuters.com time to read: +4 min

Japanese yen and U.S. dollar banknotes are seen with a currency exchange rate graph in this illustration picture taken June 16, 2022. Japanese authorities last year intervened to prop up the yen for the first time since 1998. Other currencies similarly fell against the yen in the previous session, with the euro losing more than 1.5% to a low of 154.39 yen. The Aussie stood at 94.03 yen , after having fallen to an over one-month low of 93.16 yen on Tuesday. Sterling edged 0.02% lower to $1.2076, languishing near the previous session's close to seven-month low of $1.20535.

Persons: Florence Lo, James Malcolm, Shunichi Suzuki, Masato Kanda, Janet Yellen, Rodrigo Catril, Raphael Bostic, Loretta Mester, Rae Wee, Sam Holmes, Stephen Coates Organizations: U.S, REUTERS, Rights, UBS, Japanese Finance, Tokyo, Treasury, New Zealand, Sterling, National Australia Bank, Atlanta Fed, Cleveland Fed, Thomson Locations: Rights SINGAPORE, Asia, Washington, Japan

☆ S&P 500 ends at lowest since June 1 as data fuels rate worries
▼ + stars: | 2023-10-03 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

The Dow turned negative for the year for the first time since June and ended at its lowest level since May 31. Data showed U.S. job openings unexpectedly increased in August, fueling worries about a tight labor market ahead of Friday's key U.S. monthly jobs report. All but one S&P 500 sector - utilities (.SPLRCU) - were lower on the day, led by declines in consumer discretionary (.SPLRCD) and technology (.SPLRCT). Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. The S&P 500 posted one new 52-week high and 63 new lows; the Nasdaq Composite recorded 15 new highs and 439 new lows.

Persons: Dow, Rick Meckler, Brendan McDermid, Raphael Bostic, Loretta Mester, advancers, Caroline Valetkevitch, Ankika Biswas, Shashwat Chauhan, Vinay Dwivedi, Maju Samuel, Richard Chang Organizations: Microsoft, Dow, Nasdaq, Federal, Investors, Cherry Lane Investments, New York Stock Exchange, REUTERS, Dow Jones, Atlanta Fed, Cleveland Fed, Reuters, Ofcom, NYSE, Thomson Locations: New Vernon , New Jersey, New York City, U.S, Bengaluru

It needs to translate into changes in economic outcomes," Bostic said in comments to reporters alongside the release of a new policy essay. Part of that adaptation is how the Fed's short-term benchmark is translated ultimately into mortgage rates, corporate bonds yields, and other securities that influence economic activity. In separate comments, Cleveland Fed President Loretta Mester said she similarly is watching how the rise in bond yields will play out, even though she feels the Fed's policy rate still needs to rise. It may well be that the Fed's hawkish rate posture is no longer the primary impetus for the rise in yields. Reporting by Howard Schneider and Dan Burns; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

Persons: Federal Reserve Bank of Atlanta Raphael, Bostic, Clodagh, Raphael Bostic, Loretta Mester, Mester, Torsten Slok, Slok, Howard Schneider, Dan Burns, Andrea Ricci Organizations: Federal Reserve Bank of Atlanta, REUTERS, Rights, Federal Reserve, Treasury, Atlanta Federal Reserve, U.S, Cleveland Fed, Apollo Global Management, Reuters, Fitch, Treasury Department, Bank of, Thomson Locations: Dublin, Ireland, Atlanta, China, York

☆ Indexes ended sharply lower as data adds to rate worries
▼ + stars: | 2023-10-03 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. Data showed U.S. job openings unexpectedly increased in August, fueling worries about a tight labor market ahead of Friday's key U.S. monthly jobs report. All but one S&P 500 sector - utilities (.SPLRCU) - were lower on the day, led by declines in consumer discretionary (.SPLRCD) and technology (.SPLRCT). Cleveland Fed President Loretta Mester said she is open to raising rates again, potentially at the bank's next meeting. While the Dow is down slightly for the year so far, the Nasdaq remains up sharply since Dec. 31 after a rally driven by enthusiasm over artificial intelligence.

Persons: Brendan McDermid, Rick Meckler, Raphael Bostic, Loretta Mester, Dow, Ankika Biswas, Shashwat Chauhan, Vinay Dwivedi, Maju Samuel, Richard Chang Organizations: New York Stock Exchange, REUTERS, Microsoft, Major U.S, Federal, Investors, Cherry Lane Investments, Nasdaq, Dow Jones, Atlanta Fed, Cleveland Fed, Reuters, Ofcom, Thomson Locations: New York City, U.S, Major, New Vernon , New Jersey, Bengaluru

☆ Indexes fall at least 1% as data adds to rate worries
▼ + stars: | 2023-10-03 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 28, 2023. Data showed U.S. job openings unexpectedly increased in August, fueling worries about a tight labor market ahead of Friday's key U.S. monthly jobs report. All but one S&P 500 sector - utilities (.SPLRCU) - were lower on the day, led by more than 2% declines in consumer discretionary (.SPLRCD) and technology (.SPLRCT). Cleveland Fed President Loretta Mester said she is open to raising rates again, potentially at the bank's next meeting. The S&P 500 posted one new 52-week high and 62 new lows; the Nasdaq Composite recorded 13 new highs and 390 new lows.

Persons: Brendan McDermid, Rick Meckler, Raphael Bostic, Loretta Mester, Dow, advancers, Ankika Biswas, Shashwat Chauhan, Vinay Dwivedi, Maju Samuel, Richard Chang Organizations: New York Stock Exchange, REUTERS, Microsoft, Dow, Nasdaq, Major U.S, Federal, Data, Investors, Cherry Lane Investments, Dow Jones, Atlanta Fed, Cleveland Fed, Reuters, Ofcom, NYSE, Thomson Locations: New York City, U.S, Major, New Vernon , New Jersey, Bengaluru

☆ Morning Bid: This Fed's not for turning
▼ + stars: | 2023-10-03 | by ( ) www.reuters.com time to read: +5 min

The U.S. Federal Reserve building is pictured in Washington, March 18, 2008. That thought was echoed by Cleveland Fed chief Loretta Mester, who said: "I suspect we may well need to raise the fed funds rate once more this year." Either way, this is not the sound of a Fed who thinks the inflation battle is won. Fed hawkishness, however, has kept futures markets pricing a 50-50 chance of another quarter point rate hike to the 5.50-5.75% range by year-end. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Jason Reed, Mike Dolan, they've, Michelle Bowman, Loretta Mester, Michael Barr, hawkishness, Raphael Bostic, Susan Fenton Organizations: U.S . Federal, REUTERS, Reserve, Cleveland Fed, Institute, Supply, Bank of Japan, Reserve Bank of Australia, Big Tech, Atlanta Federal Reserve, Treasury, McCormick, PMI, Reuters, Thomson Locations: Washington, U.S

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