Your Evening Briefing: More Rate Hikes Needed, Fed Governor Says

As cooler air descends across some parts of the US, so too has a chill arrived on Wall Street to dispel warm feelings of inflation’s defeat and a possible soft landing. A rout in Treasuries intensified and US stocks lost ground Monday after Federal Reserve officials alluded to the need for the central bank to leave borrowing costs high. Vice Chair for Supervision Michael Barr said that the biggest question was how long to leave interest rates elevated. But Fed Governor Michelle Bowman reiterated her call for multiple additional rate hikes. Here’s your markets wrap.

Office prices in the US are due for a crash, and the commercial real estate market faces at least another nine months of declines, according to Bloomberg’s latest Markets Live Pulse survey. About two-thirds of the 919 respondents surveyed said they believe the US office market will only rebound after a severe collapse.