Economics
Yellen Rate Remarks Halt U.S. Stock Rally as Dollar Strengthens
- Fed chair says December meeting `live possibility' for hike
- Emerging currencies slide with Treasuries; oil also sinks
Can Fed Increase Rates While Other Central Banks Ease?
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Janet Yellen halted the U.S. equity rally, fueled gains in the dollar and sent two-year Treasury yields to their highest level since 2011 after she the U.S. economy is performing well and December remains a “live possibility” for higher interest rates.
The Standard & Poor’s 500 Index fell from a three-month high, while the dollar strengthened against emerging-market currencies as the Federal Reserve chair said improvements in the economy had set the stage for a potential rate increase by the end of the year. Two-year Treasury yields topped 0.80 percent after the comments pushed the odds of a December rate hike to 58 percent. Oil retreated as crude inventories rose.