Asian Stocks to Fall as Fed Hikes, Dollar Jumps: Markets Wrap

Live updates

1. 2h ago

   Asian Stocks Expected to Fall After Fed Rate Hike

   Asian stocks are projected to decline following the Federal Reserve's first interest rate hike in three years. The move triggered a U.S. market sell-off where the Dow fell 700 points and the S&P 500 slid. Fed official Kevin Warsh attributed the action to inflation remaining "too high," reviving a "higher for longer" policy narrative. While U.S. futures have since begun to climb and global bonds show signs of recovery, the initial reaction saw the U.S. dollar jump and equity markets drop.

   Why it matters

   The Federal Reserve's shift back to rate hikes marks a departure from previous pauses. This policy change impacts global currency valuations and borrowing costs. Investors are now weighing whether this represents a necessary inflation fight or a policy mistake.

   What is confirmed

   • The Federal Reserve raised interest rates for the first time in three years.
   • The Dow fell 700 points and the S&P 500 declined following the Fed's action.
   • Fed official Kevin Warsh stated that inflation is still "too high."
   • U.S. stock futures rose after the initial market sell-off.

   Still unconfirmed

   • Kevin Warsh undersells the actual reason for the rate increase.

   What to watch next

   • Further commentary from Fed officials on the duration of higher rates.
   Sources used for this update (10)

   1. WSJ — U.S. Markets Sell Off After Fed’s Warsh Says Inflation Is Still ‘Too High’
   2. Bloomberg.com — Asian Stocks to Fall as Fed Hikes, Dollar Jumps: Markets Wrap
   3. CNBC — Stock futures rise after Fed's rate hike spurs a market sell-off: Live updates
   4. Yahoo Finance — Fed Revives ‘Higher For Longer’ Narrative With Rate Hike — Strategist Calls It A ‘Policy Mistake’
   5. Barron's — Dow Falls 700 Points, S&P 500 Slides
   6. Reuters — Fed's Warsh lays out forces driving up bond yields
   7. Bloomberg.com — Global Bonds Recover as Warsh’s Inflation Fight Calms Market
   8. WSJ — Some Analysts See Good News for Bonds
   9. thestreet.com — Kevin Warsh undersells the real reason why the Fed raised rates
   10. abcnews.com — US futures climb after Fed takes a hawkish turn on inflation
   confidence 90%