Equities fell overnight as the latest reports on US consumer prices, housing starts and industrial production fuelled bets that the Federal Reserve might raise interest rates sooner than expected, after all, as the US economy is gathering steam.
Two Fed officials, Bank of Atlanta President Dennis Lockhart and San Francisco boss John Williams, flagged that the Fed might hike rates at least twice this year.
"Currently my assumption is two, possibly three," Federal Reserve Bank of Atlanta President Dennis Lockhart said in Washington at an event hosted by Politico, according to Bloomberg. Williams, also at the event, said "gradual means two to three rate increases this year."
The Fed could lift rates as early as its next meeting in June, both Lockhart and Williams suggested, according to Bloomberg. Meanwhile, Dallas Fed President Robert Kaplan said he'd like to see an increase soon.
"Whether that's June or July, I can't say right now," Kaplan told reporters after a speech, Reuters reported.