US stocks tumble after hawkish Fed minutes signal rate rises

June meeting

Eve Maddock-Jones
clock • 1 min read

Minutes from the Federal Reserve’s most recent monetary policy meeting revealed an intent to increase interest rates further, driving a US equities drop.

The Fed opted to pause its streak of interest rate hikes and kept rates at 5-5.25% at its June meeting, which sparked a market rally. But the forward guidance and messaging from the Fed's chair Jerome Powell since has consistently indicated that the central bank was not done increasing rates. Jerome Powell signals further US rate rises to come The minutes provided context for June's pause, with sticky global energy prices and core inflation combined with a tight labour market "underscored the need to raise policy rates further or hold them at sufficiently restrictive levels to brin...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on US

Friday Briefing: Not quite the week we were all expecting

Friday Briefing: Not quite the week we were all expecting

Friday Briefing

Eve Maddock-Jones
clock 14 July 2025 • 3 min read
BCA Research's Matt Gertken: Weighing up Trump's tariff threats
US

BCA Research's Matt Gertken: Weighing up Trump's tariff threats

Markets pricing in good news

Matt Gertken
clock 14 July 2025 • 4 min read
Trump confirms copper tariffs and punishes Brazil with 50% levies
US

Trump confirms copper tariffs and punishes Brazil with 50% levies

Latest escalation in global trade war

Sorin Dojan
clock 10 July 2025 • 2 min read
Trustpilot