The Federal Reserve’s pledge to redouble its inflation-fighting efforts is spooking some investors, who believe it may end up moving too aggressively after moderating its stance a month ago.
Some also worry that the Fed’s messaging is becoming erratic as it reacts to successively weak then strong economic data.
Fed Chair Jerome Powell told U.S. lawmakers this week that the central bank would likely need to raise interest rates higher than expected in response to recent economic data that surprised on the upside.
Source : Analysis indicates investors fear the Fed may overdo tightening while awaiting key data