Stocks and long-dated Treasuries maintained losses after minutes from the latest Federal Reserve meeting showed officials were laser focused on tamping down inflation.
The S&P 500 ended trading 1 per cent lower while the tech-heavy Nasdaq 100 shed 2.2 per cent as the minutes signaled the U.S. central bank is prepared to raise rates sharply and reduce its balance sheet to cool the economy.
The commentary was largely in line with what Fed officials have said in recent days, showing a willingness to raise rates 50 basis points at the May meeting and start winding down the balance sheet quickly. The 10-year Treasury yield rose to 2.59 per cent while the two-year rate dipped to 2.49 per cent.
Ahead of the minutes, traders had bet the Fed would implement 225 basis points of rate hikes by the end of the year, adding to the 25 basis points already delivered in March. The central bank hasn’t tightened that much in one year since 1994, a famously brutal year for bond investors…
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2022-04-06 20:08:00
