Spencer Jakab | Investors Should Root for a Rate Increase-Really
Dow Jones03:15
Stock investors had better hope the Federal Reserve raises rates tomorrow. Yes, seriously-it beats the alternative.
On Monday, the 10-year Treasury note's yield crossed 5%, hitting its highest intraday level since 2007. That benchmark, not the overnight rate decided by human beings at the Fed, is what really matters to stock prices and to home buyers. Doubts about how committed Fed rate setters are to tackling inflation have hurt the central bank's sway over the bond market. The market reaction to leaving rates unchanged again could be a repeat of July-when the Fed held rates steady-or worse, as Spencer Jakab writes in today's Markets A.M. newsletter.
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