Stocks Churn as Fed Skip in Sight, But No Pivot: Markets Wrap
- Daly says Fed has ‘more work to do’ to get inflation to goal
- Core CPI posts smallest back-to-back increases in two years
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Stocks struggled for direction amid bets that even if the Federal Reserve pauses its rate hikes in September, policy will remain tight to prevent a flare-up in inflation. Treasuries fell.
A renewed jump in longer-term US yields weighed on sentiment after a weak 30-year bond auction. Wall Street’s risk-on bid also faded as Fed Bank of San Francisco President Mary Daly told Yahoo! Finance the central bank still has “more work to do.” That’s even after data showed the core consumer price index had the smallest back-to-back increase in more than two years.