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Interest rate hikes to continue until inflation subsides

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The S&P 500 broke a four-week winning streak this week as the latest commentary from the Federal Reserve suggests investors can expect aggressive interest rate hikes to continue. 

The Federal Reserve in July raised its benchmark interest rate by three-quarters of a point for a second straight time in its most aggressive drive in three decades to tame high inflation.

On Wednesday, the Fed released minutes from its policy-setting meeting in July that revealed the central bank is prepared to continue raising interest rates until inflation subsides substantially. The bond market is pricing in another rate hike of at least 0.5% in September.

More:Higher prices from scorching hot inflation — and other hiccups — push consumers to borrow

On Thursday, GameStop chairman Ryan Cohen’s RC Ventures disclosed in a filing that it has unloaded its entire stake in so-called meme stock Bed Bath & Beyond. Bed Bath & Beyond shares had skyrocketed more than 350% in the past month, but they dropped 37% on Friday following the news of Cohen’s exit.

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