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Markets brace for possible Fed rate hike as inflation concern rises

Bond yields moved higher and major indexes edged lower as investors repriced the odds of a future rate increase.

Reported · Written up by our desk · Economy

Markets were bracing for the possibility of a Fed rate hike after a more hawkish tone from Fed leadership heightened focus on inflation risk, according to WSJ Markets.

The shift was reflected in rising bond yields alongside a firmer tone from traders, while stocks largely gave back ground, with equities edging lower as rate expectations moved.

The combination of higher yields and a weaker equity tone signaled investors were adjusting their outlook for the path of monetary policy as inflation concerns took center stage.

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