The Bond Market Just Called Fed Chair Kevin Warsh's Bluff on Interest Rates
Bond traders aren't counting on Warsh and the Federal Open Market Committee (FOMC) to sit on their proverbial hands for much longer.
Overview
Last week was arguably the most important of the quarter for Wall Street. It marked the busiest week of earnings season and the latest Federal Reserve meeting on interest rates.
While earnings season has been a mixed bag, with investors punishing companies spending exorbitantly on their artificial intelligence data center build-outs, it was the Federal Open Market Committee's (FOMC) decision to leave interest rates unchanged that roiled the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and technology-powered Nasdaq Composite (NASDAQINDEX: ^IXIC). The Dow's greater-than 1,100-point loss on July 29 was its worst single-day performance in over a year.
Fed Chair Kevin Warsh and his colleagues left interest rates unchanged on July 29. Image source: Official Federal Reserve Photo.
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Originally published at www.fool.com.