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Stocks Gain While Bonds, Emerging Assets Sink After Fed Comments

  • Post-Fed meeting slump pared as officials talk up hike
  • S&P 500 rallies following biggest post-FOMC rout in a year
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Is It Time for the Federal Reserve to Be More Aggressive?

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Global markets surprised by the Federal Reserve’s dovish stance last week didn’t have long to wait for the hawks to take flight.

Just days after the central bank’s decision to hold interest rates near zero sparked a rally in bonds and the biggest post-meeting equity selloff since July 2014, four Fed officials separately said that the U.S. economy is strong enough to withstand a hike this year. Their hawkish commentary bolstered American stocks and sent Treasuries tumbling with emerging-market assets.