Fed rate hike fears grow as inflation spooks markets
Federal Reserve officials raised the possibility of a larger interest rate hike following a hot inflation report. Meanwhile, stock markets tumbled as Treasury yields surged and Nvidia shares declined.
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United States interest rate expectations shifted sharply on Tuesday after Federal Reserve officials warned that a 50-basis-point rate hike could arrive next month. The hawkish commentary followed hotter-than-expected inflation data that immediately rattled broader financial markets. Bond yields surged and equities fell as investors recalibrated monetary policy risks heading into year-end.
