Stocks Rise on Bets Fed Is Ready to Take a Break: Markets Wrap
- Inflation slows, giving room for officials to pause rate hikes
- Short-term Treasury yields reach highest levels since March
This article is for subscribers only.
Wall Street got some encouragement to send stocks higher after a slowdown in inflation bolstered speculation the Federal Reserve will pause its tightening campaign on Wednesday.
That’s not to say investors are betting the Fed is done with its interest-rate hikes just yet. While swap traders are putting the odds of a June increase at only 10%, they still see the potential for a July move. And to some of the world’s biggest money managers, the central bank will continue to sound hawkish even if it stays on hold this week.