US stocks fall as NY Fed clarifies rate stance

Markets were mixed on Friday.

The S&P 500 fell 0.6 percent but the STOXX Europe 600 rose 0.1 percent and the Nikkei 225 surged 2.0 percent.

US stocks lost momentum after investors realised that the Federal Reserve may not be as prepared for a big rate cut as previously expected. A spokeman for the New York Federal Reserve said that President John Williams’ assertion that policymakers need to “act quickly” as economic growth slows was drawing from research, not hinting at what may happen at this month’s Federal Open Market Committee meeting.

Still, some continue to expect a big cut.

“They really need to convince guys like me and the people that control a lot of the money on Wall Street that they are truly serious about reinflating the economy,” said Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management.