Stocks Thu Oct 22 22:05 Bloomberg
Oil bounces back and drags down stocks and bonds days before the Fed
What happened
A fresh rise in oil prices pulled down both stocks and bonds, Bloomberg reported. The oil rebound stoked worries about inflation just days before the Federal Reserve announces its decision on interest rates.
Why it matters
Oil feeds into the cost of gasoline, transport and almost everything that travels by truck, so when it gets more expensive, prices at the store can follow. That is why a jump in oil can push central banks to keep rates high for longer, which in general makes loans and credit cards more expensive. And when markets wobble, the Mexican peso and the Canadian dollar can feel it too.
Market impact
The source says stocks and bonds fell but does not say by how much, or how currencies like the peso reacted. It is too early to tell what effect the Fed decision, due in a few days, will have.
Learn more
What inflation is, and how it hits you Read the lesson →