Bonds & Stocks
The selloff on Wall Street showed signs of abating even as investors grappled with the threat of higher-for-longer interest rates and an Israeli counter-strike. US equity futures ticked higher, signaling a recovery after the S&P 500 fell more than 1% in the past two sessions. Two-year Treasuries approached 5%. The dollar advanced for a fifth day, its longest run since January.
Economy
Federal Reserve Vice Chair Philip Jefferson said he expects inflation will continue to moderate with interest rates at their current level but persistent price pressures would warrant holding borrowing costs high for longer. Jefferson said Tuesday that while there has been considerable progress in lowering inflation, the Fed’s task of sustainably restoring 2% inflation is “not yet done.”
World
Iran’s unprecedented attack on Israel and the prospect of escalating hostilities has threatened to embroil Jordan, a key Western ally and a country regarded by Gulf states as pivotal to their own security. When the
Islamic Republic fired a barrage of missiles and drones at Israel on Saturday night, Jordan helped shoot down some that flew over its capital Amman, with Foreign Minister Ayman Safadi saying the kingdom saw the projectiles as posing “a real danger” to its territory.