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Dollar gains, stocks slip as Fed officials talk tough on rates

18 November 2022 02:23 (UTC +04:00)

The dollar rose and equity markets slid on Thursday after hawkish remarks from a Federal Reserve official that reminded investors a less aggressive monetary policy is unlikely with U.S. employment data still showing a tight labor market, APA reports citing Reuters.

Nagging recession and higher interest rate worries also rattled European markets, while the pound tumbled as Britain hoped to put its disastrous recent fiscal experiment behind it with a more austere-looking budget.

4 minute readNovember 18, 202212:48 AM GMT+4Last Updated 8 min ago
Dollar gains, stocks slip as Fed officials talk tough on rates
By Herbert Lash and Marc Jones
Pound and Dollar banknotes are seen in this picture illustration
A picture illustration of U.S. dollar Swiss Franc British pound and Euro bank notes
People walk past an electric board showing Japan's Nikkei share average in Tokyo

[1/3] Pound and Dollar banknotes are seen in this picture illustration taken June 13, 2017. REUTERS/Dado Ruvic/Illustration/File Photo

Summary
Companies
European stocks drop after early rise
Dollar regains strength on hawkish Fed speak
Oil and metals sag in commodity markets
NEW YORK/LONDON, Nov 17 (Reuters) - The dollar rose and equity markets slid on Thursday after hawkish remarks from a Federal Reserve official that reminded investors a less aggressive monetary policy is unlikely with U.S. employment data still showing a tight labor market.

Early optimism in Europe about Siemens' < SIEGn.DE> earnings and that the European Central Bank might slow its rate hikes soon waned and markets fell. More talk from Fed officials that rates aren't high enough kept the pressure on equities.

The U.S. central bank needs to continue raising rates by at least another full percentage point, as hikes so far "have had only limited effects on observed inflation," said James Bullard, president of the St. Louis Fed.