Stocks Get No Respite as Traders Amp Up Fed Wagers: Markets Wrap

  • Swap markets see June interest-rate hike as near certainty
  • Fed inclined toward more rate increases to curb inflation
WATCH: David Kostin, chief US equity strategist at Goldman Sachs, discusses the state of play in US markets, his investment strategy and where he’s finding opportunity.Source: Bloomberg
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The stock market got little encouragement to sustain its rebound after the Federal Reserve signaled that interest rates will continue moving higher amid ongoing inflation concerns.

It’s not like the minutes from the latest Fed gathering brought a great deal of new information, but they reinforced the idea that nothing will prevent officials from keeping rates higher for longer should economic resilience pose a threat to their goals. Now one thing to highlight is that while Chair Jerome Powell hasn’t been pushing back against easier financial conditions, the statement indicated they could warrant a “tighter stance.”