Virus Threat Lifts Fed-Cut Odds With Weaker Price Outlook
- Inflation breakeven rates tumble as virus fuels growth worries
- Fed vice chairman may give investors a steer Tuesday afternoon
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Wall Street is increasingly betting the Federal Reserve may have to cut interest rates again as jitters over the spread of the new coronavirus roil financial markets.
U.S. stocks and interest rates tumbled further Tuesday on worries that the outbreak would take a bigger toll on global growth. And despite the disruption to global supply chains, investors marked down the risk of inflationary pressures emerging, sending breakeven inflation rates derived from the government bond market to the lowest levels in more than three months. Breakeven rates are among the metrics central bankers look at to gauge price expectations.