Markets Drop as Economic Data and Fed Comments Diminish Near-Term Rate Cut Hopes
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Wall Street extended sell-off as Treasury yields hit 1-month high following robust economic data diminishing prospects of imminent Fed rate cut.
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Markets reacted strongly to Fed Waller's hawkish remarks indicating no need to cut rates rapidly, reducing hopes of a March cut.
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Oil prices remain supported by geopolitical tensions in Middle East despite growth challenges in China.
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Yen weakened significantly against dollar with rising US Treasury yields.
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Markets seem to have prematurely priced in Fed rate cuts for 2023 - path of monetary policy remains highly uncertain.