Fed Holds Rates, US Stocks Mixed; Warsh Sees Bond Market Restraining Inflation
The Federal Reserve kept interest rates unchanged, leading to mixed US stock performance as Chair Warsh highlighted that rising bond yields may already be helping to curb inflation.
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The Federal Reserve left interest rates steady at its latest meeting. US equities reacted with choppy trading, ultimately closing mixed.
The S&P 500 edged down 0.1%, while the Dow Jones Industrial Average dropped 1.3%.
Fed Chair Warsh noted that rising bond yields since the prior meeting may already be contributing to tighter financial conditions. He suggested that the bond market is doing some of the work to restrain inflation, implying less urgency for further rate hikes.
Source: First Squawk