Bond Traders Eye Fedspeak for Sign of Doubt After Stocks Swings
- Market’s confidence in three 2019 interest-rate hikes dimmed
- Fed’s Quarles, international capital flow data ahead this week
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Bond traders will look to key Federal Reserve speakers this week for any signs that officials are wavering from their plans to keep hiking rates gradually after U.S. stocks suffered their worst weekly sell-off since March.
In the first quarter, the Fed looked past a tumble in the S&P 500 Index to tighten in March. Still, money-market traders have some doubts this time around, at one point last week dialing back confidence in the prospect of three rate increases next year. For investors seeking fresh insight into the central bank’s thinking, Randal Quarles, the Fed’s vice chairman of supervision, may garner the most attention when he speaks on the economic outlook Thursday.