China’s steep market decline has spilled over to US stock markets, with most major indexes down over 1%. An even bigger story, however, is the dramatic rise in interest rates this morning. The ten year Treasury has skyrocketed to 2.65% and the thirty year mortgage rate has risen to over 4.25%. Gold is down slightly while oil is near flat line. It looks like markets will be mired in red ink today. Will the Fed step up to the plate and try to restore investor confidence? With fears that the Fed is losing control of interest rates, expect some strong language from Fed governors to stem the market selloff.
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