And officials are starting to discuss when to roll back the Fed’s huge asset purchase program, which has been gobbling up $120 billion in securities a month to keep borrowing costs low.

“You can think of this meeting that we had as the ‘talking about talking about’ meeting, if you’d like,” Powell said, indicating that a policy change is at least on the central bank’s radar.

Following the announcement, the Dow fell more than 380 points, or 1.1%, and the S&P 500 and Nasdaq Composite both dropped as much as 1% and 1.2%, respectively. The bond market also experienced a sell-off, with the yield on five-year US Treasuries, which move opposite prices, jumping around 0.1%. Real yields, which refer to what borrowers pay when inflation is factored in, notched an even larger increase.

The US dollar was last trading at its strongest level in more than two months against a basket of other major currencies. In Europe, the STOXX 600 index fell for…

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