Stock markets have had a rough run this week as fears of inflation and high Treasury yields linger.
There's no two ways about where the Federal Reserve stands on its battle against rising prices as Chair Jerome Powell firmly backed the central bank's 2% target, adding that he doesn't think rates are too high now.Recent data has shown that while U.S. inflation remains well above the target rate, the pace of monthly increases has decelerated, but evidently not fast enough by Fed standards.
And the worries don't end there, the yield on the 10-year Treasury hit a high of 4.996%, trading at levels last seen in 2007, which begs the question – why put your money in risky stocks? These high interest rates have also pressured some of the largest and most profitable banks in the United States as big Wall Street lenders have"Banks are cutting costs where they can because things are really uncertain next year," Chris Marinac, research director at Janney Montgomery Scott, said."They need to find levers to keep earnings from falling further and to free up money for provisions as more loans go bad.
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