by Dan Zalipski, CFA
Fed Chairman Jerome Powell recently gave a speech in which he stated that the Fed may need to continue to increase rates, possibly aggressively, especially if inflation begins to quickly move higher. The yield on the 10-year treasury surged, with yields moving from 3.06% to 3.23% in four days, a big move for treasuries in a short amount of time. The equity markets can typically withstand rising rates but tend to get nervous when the pace is this fast. Next, the International Monetary Fund (IMF) reduced their global growth projections citing ongoing trade policy disruptions, specifically mentioning disruptions to NAFTA, Brexit and the European Union, as well as the ongoing trade dispute between the U.S. and China.