Bonds & Rates
Home›Bonds & Rates›Central Banks›US stocks rise after Fed Chair Kevin Warsh flags work…
US stocks rise after Fed Chair Kevin Warsh flags work on inflation
Warsh said financial conditions are not currently restrictive, with the Fed’s main tool for its mandate being interest rates, while the 2-year Treasury yield climbed to 4.30%.
US stock markets rose on Friday after Federal Reserve Chair Kevin Warsh, speaking at the Jackson Hole gathering, pledged to bring inflation under control and warned that price pressures are not meaningfully slowing.
In prepared remarks, Warsh said the Fed’s standard is confidence that underlying inflation is moving to its objective, clearly and at sufficient speed, and otherwise “we have work to do.” He also said financial conditions are not currently restrictive and described interest rates as the Fed’s predominant tool for achieving its mandate.
The rally coincided with mixed moves in Treasuries. The yield on the 2-year Treasury jumped to 4.30% from 4.22%, while the 10-year Treasury yield held at 4.67% and the 30-year yield fell to 5.16% from 5.19%.
By late morning Eastern Time, the S&P 500 was up 0.4%, the Dow Jones Industrial Average gained 0.4%, and the Nasdaq Composite rose 0.5%. Separate corporate earnings and deal-related news also drove sharp stock moves, including Gap shares rising nearly 20% and PayPal shares falling 11.5% after reporting that a consortium involving Advent and Stripe abandoned a pursuit of the payments firm.
Latest closeS&P 500 7,675.70 ▼0.0%|Nasdaq Comp. 26,130.20 ▼0.1%|Dow Jones 53,463.88 ▼0.2%