WS #16034
Federal Reserve Chair Jerome Powell refused to rule out an interest rate hike in October, citing hotter-than-expected CPI and PPI data. This hawkish stance pushed the 10-year Treasury yield to hover around 5.1%, creating headwinds for rate-sensitive sectors like growth tech and real estate. Long-term treasuries fell as dealer surveys offered little signal of a pivot, reinforcing the market's fear that the Fed may need to tighten further to combat sticky inflation.
Fed Hawkishness and Rate Hike Fears
Federal Reserve Chair Jerome Powell refused to rule out an interest rate hike in October, citing hotter-than-expected CPI and PPI data. This hawkish stance pushed the 10-year Treasury yield to hover around 5.1%, creating headwinds for rate-sensitive sectors like growth tech and real estate. Long-term treasuries fell as dealer surveys offered little signal of a pivot, reinforcing the market's fear that the Fed may need to tighten further to combat sticky inflation.