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Markets slide after comments raise inflation fears over rate stance

The Dow fell more than 2% as investors focused on claims that higher bond yields have already increased borrowing costs.

Reported · Written up by our desk · Central Banks

Markets moved lower after a Fed-related remarks cycle reignited concerns about inflation and the central bank’s approach to rates, with the Dow dropping more than 2%.

WSJ Markets said the selling followed comments from Fed Chair Jerome Powell indicating that rising bond yields have already lifted borrowing costs.

The report framed the move as a reaction to those higher-rate conditions, which can feed into inflation expectations and pressure risk assets.

Latest closeDow Jones 51,594.14 ▼2.2%

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