February 22, 2018 10:07 am
Categorised in: Breaking Financial News
Investor anxiety was brought back to the surface Wednesday, after minutes from the Federal Reserve’s latest meeting revealed that members saw an uptick in inflation and increased economic growth as reasons for the central bank to continue its path on raising interest rates gradually.
The central banking news consequently put markets on edge, with U.S. government debt yields rising sharply following the document’s release, and Wall Street reversing gains, to finish the session down in the red.
The Fed said it still saw inflation reaching its 2 percent objective and that it didn’t look like it was getting out of control. The news surrounding higher interest rates continued to weigh on markets Thursday, but this won’t be the only piece of news set to shake up markets.
As debt yields pull back from their earlier gains, investors will be turning their attention to speeches by the U.S. Federal Reserve, and economic data.
On Thursday, Fed Governor Randal Quarles, New York Fed President William Dudley, Atlanta Fed President Raphael Bostic and Dallas Fed President Rob Kaplan will all be delivering remarks at separate engagements— with investors waiting to see if they provide further comments on the central bank’s minutes release.
Overseas, the European Central Bank is due to release the minutes from its latest monetary policy meeting, which took place in January.
On the data front, initial jobless claims will be released at 8:30 a.m. ET, followed by The Conference Board’s Leading Economic Index at 10 a.m. ET and the Kansas City Fed manufacturing index, due at 11 a.m. ET.
Elsewhere, the U.S. Treasury is set to auction $29 billion in seven-year notes, while announcing the size of three individual bills, due to be auctioned next week.
—CNBC’s Jeff Cox contributed to this report