US Market Indexes Lower, Dow Jones Closes Below 25000

US Market Indexes Lower, Dow Jones Closes Below 25000

US Market Indexes Lower, Dow Jones Closes Below 25000

Investors will get more news out of the Fed on Thursday, as New York Fed President William Dudley, Atlanta Fed President Raphael Bostic, and Dallas Fed President Rob Kaplan are all due to deliver remarks.

Financial markets have fluctuated wildly this month as investors fretted about how fast the Fed might raise rates in the wake of data showing a pick-up in USA inflation.

The report was released Friday ahead of new Chairman Jerome Powell's first public outing next week, when he testifies separately before House and Senate committees. "This suggests to me that it may be appropriate later this year to begin an assessment of our current monetary policy framework and alternatives". Looking ahead, markets were awaiting a release from a report on monetary policy at 11 a.m.

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St. Louis Fed President James Bullard tried to tamp down expectations of four rate hikes in 2018, instead of the widely anticipated three, saying on Thursday that policymakers need to be careful not to increase rates too quickly because that could slow the economy.

"It may be appropriate later this year to begin an assessment of our current monetary policy framework and alternatives", Mester said in prepared remarks to a conference of central bankers and economists in NY.

Stocks ended lower on Wednesday after the release of the minutes pushed yields on the benchmark 10-year U.S. Treasury note to a four-year high of 2.957 percent.

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The Fed's key policy rate is now in a range of 1.25 percent to 1.5 percent. Just over a year later, in December 2015 the central bank raised interest rates for the first time in almost a decade. The Fed had pushed the rate to a record low near zero in December 2008 as it struggled to contain a severe financial crisis and the deepest economic downturn since the Great Recession of the 1930s.

"While the recent stock market volatility will not be reflected in the US LEI until next month, consumers' and business' outlook on the economy had been improving for several months and should not be greatly impacted", said Ataman Ozyildirim, Director of Business Cycles and Growth Research at the Conference Board.

The spin from traders concerning the Fed minutes evolved rapidly during the day, as folks realized that the initial dovish take was misguided for a few reasons. That prompted some investors to boost the chance of faster rate hikes.

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Despite Fed's hawkish views, bets in the US short-term interest rate futures continued to reflect expectations of three rate hikes this year, based on a Reuters analysis. It partially attributed the strong stock gains past year and into January to investor anticipation of a boost to after-tax earnings from corporate tax cuts that were included in the tax bill Congress passed in December. Yellen presided at the January meeting, which occurred before the market turmoil, and the Fed left rates unchanged. The minutes showed the central bank sees increased economic growth and an uptick in inflation as justification to continue to raise interest rates gradually.

Minutes of the January meeting showed on Wednesday the US central bank's rate-setting committee grew more confident in the need to keep raising rates, with most believing inflation would perk up.

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