Thursday's jobs data revived expectations the US central bank would stick to its monetary tightening path.
Thursday’s jobs data revived expectations the US central bank would stick to its monetary tightening path.London — Stock markets dropped across the globe on Friday and the dollar leapt to six-week highs as jobs data revived expectations the US central bank would stick to its monetary tightening path.
“The markets are torn between two instruments. Intra-day stock prices and credit spreads see a lot of volatility and nervousness while there has been no surge in implied volatility options,” said Ielpo. At its January 31 to February 1 policy meeting, the Fed opted to moderate the pace of interest rate rises, lifting rates by 25 basis points to the 4.50%-4.75% range after a series of jumbo rate increases last year.