That’s when stocks tumbled back toward their early July values on news of an unexpected speech to be given on Monday by Federal Reserve Governor Lael Brainard.
Advertisement
Viewed as an influential voice of caution within the Fed’s Washington-based board of governors, Brainard was the U.S. Treasury’s undersecretary for worldwide affairs from 2010 to 2013.
Had she signaled a change of heart, it might have convinced investors that a hike was coming next week, especially after another dove, Boston Fed chief Eric Rosengren, said on Friday that there’s case for higher rates. This week’s early Fed comments were the last we’ll hear before Fed officials enter their “quiet period”.
E-mini futures on the S&P 500 slipped 0.4 percent after the underlying gauge rallied 1.5 percent on Monday, recouping some of Friday’s 2.4 percent slump.
A number of top Fed officials have hinted at a possible raise at the central bank’s next policy-setting meeting on September 20-21.
While both exchanges will be closed for Bakri Id on Tuesday, experts say that markets will not recover strongly until clarity is gained on the Fed rate hike and other global factors.
Republican Presidential candidate Donald Trump accused the Fed on Monday of keepinginterest rates low because of political pressure from the Obama administration.
Presidential candidiate Clinton nearly collapsed at an event on Sunday, suffering from pneumonia, although she said on Monday she could resume presidential campaigning in a couple of days. However, the majority of traders expect at least one rate liftoff before the end of the year.
Goldman Sachs economists are losing confidence the Federal Reserve will raise interest rates next week, dramatically cutting their September rate-hike odds following a series of mixed messages from policy makers in recent days.
The global economy has been sputtering. The Fed could raise interest rates next week, but investors aren’t sure the economy is healthy enough to handle it. The United States also sold $24 billion in three-year notes at a high yield of 0.947 percent.
Dennis Lockhart, Atlanta’s Federal Reserve Bank president, added that there will be “serious discussion” at the meeting but emphasized that he doesn’t feel there’s a sense of impatience with regard to raising the rates.
Policymakers will go into the September 20-21 meeting divided, with some concerned current lowrates will fuel a surge in inflation while another camp, which includes Brainard, has argued that the Fed should not rush to raise rates.
Advertisement
Government data today showed New Zealand’s food prices rose at their fastest monthly pace in more than five years, seasonally adjusted, as fruit and vegetables and grocery items jumped in August. Phone companies also rose and AT&T gained 53 cents, or 1.3 percent, to $40.24. The contract added 41 cents on Monday.
