Two key central bank decisions sit at the top of investors’ radar this week, after renewed global growth concerns saw U.S. stocks sell off on Friday while benchmark yields fell to record lows.
The U.S. Federal Open Market Committee begins its two-day meeting on June 14. Expectations for a summer rate hike were drastically reduced when a sharply lower-than-expected May nonfarm payroll number cast fresh doubts over the health of the U.S. economy.
In the build-up to the June meeting, many Fed officials had made dovish comments. Following the dismal jobs report, Fed chair Janet Yellen spoke at an event in Philadelphia last Monday, where she struck a generally positive tone on the U.S. economy and insisted that the Fed needed to raise rates. She stepped back, however, from putting a time frame.