Stocks fall, bond yields and dollar gain after hawkish Fed comments
- Major U.S. stock indexes end lower
- Oil prices ease; U.S. dollar index hits highest in nearly 2 yrs
- Fed minutes due Wednesday
NEW YORK, April 5 (Reuters) – Stocks on global indexes fell on Tuesday while U.S. Treasury yields rose to multi-year highs as comments from U.S. Federal Reserve Governor Lael Brainard put investor focus on the possibility of aggressive monetary policy tightening by the central bank to curb inflation.
The U.S. dollar hit its highest in nearly two years.
Brainard said she expects a combination of interest rate increases and a rapid balance sheet runoff to bring U.S. monetary policy to a “more neutral position” later this year, with further tightening to follow as needed. read more
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Separately, San Francisco Fed President Mary Daly pointed to the next meeting, scheduled for May 3-4, as a possible start to the balance sheet reduction.
Wednesday brings the…
