The latest comments from Federal Reserve officials suggest their rate-hiking campaign is far from over.
 | THU, NOV 17, 2022 | | | |
| DOW | | NAME | LAST | CHG | %CHG | | AAPL | 150.72 | +1.93 | +1.30% | | CSCO | 46.59 | +2.20 | +4.96% | | INTC | 29.89 | +0.36 | +1.22% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | AMD | 73.90 | +1.20 | +1.65% | | AMZN | 94.85 | -2.27 | -2.34% | | AAPL | 150.72 | +1.93 | +1.30% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AMD | 73.90 | +1.20 | +1.65% | | AMZN | 94.85 | -2.27 | -2.34% | | AAPL | 150.72 | +1.93 | +1.30% | |
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Stocks dropped for a second session Thursday, as investors weighed the latest comments from Federal Reserve officials that signaled the central bank is far from a pause in its rate-hiking campaign. St. Louis Fed President James Bullard suggested in a speech Thursday that the policymakers should raise the fed funds rate to somewhere between 5% and 7% — a range that is higher than the market is pricing. "The change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023," Bullard said. Those comments sent the major averages lower, and drove bond yields higher, as recession fears resurfaced on Wall Street. Stocks vulnerable to a downturn lagged the S&P 500. |
Meanwhile, a range of mixed economic signals are leading some investors to conclude the central bank can manage a soft landing for the economy. But others on Wall Street took a more bearish view. "We don't share this ambivalence," Ethan Harris, head of global economics research at Bank of America, wrote in a Thursday note. "Absent a surprisingly fast drop in underlying inflation we think the Fed will very likely push the economy into a recession that is likely a bit bigger than what other recession forecasters assume." "We suspect that this high-probability bad outcome is not fully priced into risk assets," Harris added. | |
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