Stocks Tumble as Fed Official Casts Doubt on Rate Cuts

• Stocks dropped sharply on Thursday after a Fed official expressed concern about cutting interest rates unless inflation improves • The S&P 500 fell 0.8%, the Dow swung 412 points lower, and the Nasdaq dropped 0.8% • The selloff came after Minneapolis Fed President Neel Kashkari questioned the need for rate cuts this year due to economic momentum and sideways inflation • The comments dampened hopes for the rate cuts that had been fueling the 2019 stock market rally • Treasury yields sank immediately as traders scaled back bets on the Fed cutting rates soon