October 23, 2018 / 6:19 PM / a month ago

Fed's Bostic: Difficult to know cause of equity selloff

FILE PHOTO: Atlanta Federal Reserve Bank President, Raphael Bostic speaks with Reuters in an interview at Stanford University's Hoover Institution in Stanford, California, U.S., May 4, 2018. REUTERS/Ann Saphir/File Photo/File Photo

BATON ROUGE, La (Reuters) - It is difficult to say what is behind a recent stock market selloff, said Atlanta Federal Reserve president Raphael Bostic, though he cited geopolitical risk and a rise in long-term bond yields as recent developments that may play a role.

The Fed’s own rate increases have been underway “for the better part of two years, the uncertainty around trade has been going on for many, many months,” Bostic said, downplaying two often mentioned reasons for the sell-off. By contrast “changes in yields have gotten people to be more sensitive to the variety of investment opportunities.”

Reporting by Howard Schneider; Editing by Chizu Nomiyama

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