Economics
U.S. Stocks Slip as Investors Ramp Bets for Rate Hike This Year
- Fed chair says case for higher rates has strengthened
- Fischer comments bolster bets for possible move next month
Yellen: Case to Raise U.S Rates Is Getting Stronger
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U.S. stocks slipped in a volatile session, as remarks from Federal Reserve officials lifted optimism on the economy while also bolstering speculation interest rates could rise as soon as next month.
A speech by Fed Chair Janet Yellen sparked an early surge in equities amid a bullish economic assessment, which included a lack of clear guidance on when a rate boost may come. Equities then tumbled after Vice Chairman Stanley Fischer said Yellen’s comments were consistent with a possible September increase, only to recover much of their losses in a final-hour rebound. Utilities and phone companies led the declines, while banks, technology and health-care shares climbed.