Fed Rate Hike Signals Send Markets Tumbling and Mortgages Soaring as Holiday Shopping Faces Headwinds
-
Markets dropped after Fed Chair Powell suggested interest rates may continue rising, concerning investors about economic growth.
-
The dollar, bonds, and stocks declined while crude oil and gold diverged, signaling an uncorrelated market.
-
Retailers rely on holiday season profits, so higher rates could prevent them from hitting targets.
-
Mortgage rates are the highest in 20 years, making home buying more difficult.
-
The Fed may need to keep rates steady for a period to evaluate the economy's reaction before further hikes.