Federal Reserve Governor Jeremy Stein endorsed a warning by economists that raising the main interest rate may cause a financial-market convulsion similar to the “tantrum” that occurred last year after the Fed said it was considering trimming its bond purchase program.
Hong Kong stocks dropped, after the city’s benchmark index posted two straight weekly gains, as Chinese developers declined amid reports some banks tightened lending to the sector. Belle International Holdings rose after profit beat estimates.
U.S. stocks fell, erasing an early gain, and Treasuries rose on speculation the Federal Reserve is unlikely to slow the pace of stimulus cuts. European bonds rallied as Ukraine reached an agreement on early elections.
U.S. stocks fell, after the Standard & Poor’s 500 Index climbed to within three points of a record, as Federal Reserve officials indicated the central bank is unlikely to slow the pace of stimulus cuts.
Sales of previously owned U.S. homes dropped in January to the lowest level in more than a year as harsh winter weather combined with a lack of supply, strict lending rules and declining affordability to depress demand.