U.S. stocks rose, as investors parsed Fed remarks indicating a higher-for-longer rates outlook and awaited comments from Fed Chairman Jerome Powell. Yields on U.S. government bonds edged higher Tuesday. The yield on the benchmark 10-year Treasury note climbed to 3.595% from 3.516% on Monday. … Mary Daly, president of the San Francisco Fed and Raphael Bostic, president of the Atlanta Fed, in comments Monday both highlighted that interest rates would need to rise above 5% and remain there for some time. The Fed’s benchmark rate is currently a range of between 4.25% and 4.5%. “The critical question on everyone’s mind right now is: When are we going to see the Fed’s tightening peak?” said Stephen Innes, managing partner at SPI Asset Management. “We keep seeing the Fed come out and make these really hawkish comments, but the market isn’t really pricing that in.” Fed Chair Jerome Powell said Tuesday that the central bank is strongly committed to lowering inflation, even though interest-rate increases to restrain economic growth could fuel political blowback.
Source: WSJ.com: Markets
