The Fed previously had signaled it plans to raise interest rates two more times this year, but some observers have expressed concerns that the tightening monetary policy would accelerate
over fears of inflation.
Not exact matches
But longer - dated bonds fell
over inflation fears; prices for 30 - year debt sank and fell most
of the day for the benchmark 10 - year Treasury, though the latter turned moderately positive at day's end.
The impetus this time, aside from a technical matter
of investors exiting strategies betting on low volatility, was
fears over rising rates and
inflation.
The impetus this time, aside from a technical matter
of investors exiting strategies betting on low volatility, was
fears over rising rates and
inflation.
As a middle - aged white woman, I have to say two words to get millennials
over their
fear of stocks: «
Inflation Risk.»
According to Fortune, «a retreat in
inflation over the past two months has caused jitters among some Fed officials who
fear that the shortfall, if sustained, could alter the pace
of future rate hikes.
These days the Fed seems more concerned about
inflation than recession and had raised the federal funds rate to just
over 5 percent as
of mid-2006 to head off what it
fears is a potentially overheated economy.
Take a cup
of investor conservatism, stir in three tablespoons
of inflation fear and a teaspoon
of lost tax benefits, add a pinch
of higher interest rates, then bake
over a year - and - a-half decline in the market.