Barclays warns summer market volatility may persist as September Fed hike odds rise
Barclays has warned that summer volatility across financial markets may persist, according to a research note. The bank says the odds of a Federal Reserve interest-rate hike in September are rising. Those expectations are feeding the cautious mood gripping equity markets.
Summer volatility across financial markets is expected to persist in the coming weeks, according to a research note published by Barclays. The bank pointed to uncertainty over monetary policy as the principal driver of the swings.
The note said the odds of a Federal Reserve interest-rate hike in September are rising. Investors are trying to price the central bank's next move amid mixed signals from inflation data and growth indicators.
Barclays said the firming expectations of a rate increase are feeding the cautious mood in equity markets. Analysts judge that tension could persist until the Fed's next policy meeting brings greater clarity on its intentions.
Read next
Fed's Goolsbee says US inflation too high; Williams sees pressures easing
Chicago Federal Reserve President Austan Goolsbee said US inflation remains too high, while New York Fed President John Williams said price pressures are easing, highlighting a split among policymakers. In a live CNBC interview, Goolsbee declined to say where he thinks interest rates are headed. The comments come as markets weigh the Fed's next move.
Japanese banks hesitate to buy government bonds as BOJ steps back
US core PCE inflation rises to 3.4% in May, highest since October 2023
Federal Reserve says US banks could withstand $708 billion in stress-test losses
