Debt investors are betting that the Federal Reserve’s latest rate hike is a prelude to a downturn for some U.S. companies as rising borrowing costs are likely to put a damper on consumer spending and raise expenses for business.
The Federal Reserve on Wednesday announced a 0.75-percentage-point raise of the federal-funds rate, the central bank’s largest rate hike since 1994. Fed projections released Wednesday also showed that the policy makers expect to raise rates further as the year progresses.
Read more on wsj.com