What the Fed’s biggest rate hike in decades means for the bear market in bonds

Historically bad. That’s how the $53 trillion US fixed-income market has performed this year as the Federal Reserve works to curtail high inflation threatening to wreck the economy. To turbo charge the effort, the Fed on Wednesday fired off its biggest benchmark interest rate increase in nearly thirty years. But what does that mean for … Read more

FDA panel gives go-ahead for children under 5 to be vaccinated, but experts fret that not all parents will get on board

A panel of advisers to the Food and Drug Administration on Wednesday gave its endorsement to both the Moderna and Pfizer vaccines for children below the age of 5, the last group to be added to the vaccine program. The panel voted 21-0 that the benefits of Moderna’s MRNA, +3.19% two-dose vaccine for children between … Read more

This asset class with an 8% yield can withstand a great deal more pain, fund manager says

Few assets have been safe this year from the pummeling in financial markets, and junk bonds have also been rather, well, trashy. Year-to-date, the SPDR Bloomberg High Yield Bond ETF JNK, +0.24% has lost 16%, in what is almost certainly going to be the worst performance since the 2008 financial crisis. Its spread to Treasurys … Read more

More than 1,500 US flights canceled as summer travel season heats up

Airlines canceled more than 1,500 flights in the US on Thursday, one of the worst days yet for travel as the peak summer vacation season heats up. At LaGuardia Airport in New York, more than one-third of all flights were scrubbed, and more than one-fourth of flights were dropped at nearby Newark Liberty airport in … Read more

Bitcoin crash: These three metrics show how bad the carnage is, and what to expect next

Hello! Welcome back to Distributed Ledger, our weekly crypto newsletter that reaches your inbox every Thursday. I’ll walk you through what’s going on in the current bear market. As usual, find me on Twitter at @FrancesYue_ to send feedback, or tell us what you think we should cover. You can also reach me through email … Read more

US inflation expected to keep running hot: Traders see 4 straight months of roughly 9% or higher CPI readings

Just a day after Federal Reserve policy makers delivered their biggest rate hike in 28 years, the US inflation outlook continues to look dire in one obscure part of the financial market. Traders of so-called fixings, or derivatives-like related instruments to Treasury inflation-protected securities, expect four straight months of annual headline consumer-price index readings at … Read more

Crypto crash: What contagious risks could Celsius, Three Arrows pose? Here’s what to watch

The latest crisis started Sunday with Celsius, one of the biggest crypto lending platforms, pausing all withdrawals, swaps and transfers between accounts. The company reportedly has hired restructuring attorneys to advise on possible solutions for its mounting financial problems, according to a Tuesday report by the Wall Street Journal. Meanwhile, rumors swirled over potential stress … Read more

Why stocks and bonds went into relief-rally mode after Fed’s jumbo rate hike

Financial Reserve markets suffered an absolute bloodbath in the days leading up to Wednesday’s Federal Reserve decision, with stocks plunging and bond yields soaring in the wake of surprisingly hot inflation data — a sign that investors feared a Volcker-esque reaction from Federal Chairman Jerome Powell and the rest of the Federal Open Market Committee. … Read more

From Great Resignation to Forced Resignation: Tech companies are shifting to layoffs after a huge ramp up in hiring

The Great Resignation is pivoting to a Forced Resignation. Thousands of layoffs in the tech sector, compounded by hiring freezes and a slowdown in hiring, highlight the abrupt shift in fortunes over the past several months as a result of rampant inflation, fear of stagflation and recession, supply-chain interruptions, the war in Ukraine, an ailing … Read more