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The Dow Crashed on Friday Because Fed Credibility Is ‘Eroding’

Francois Aure
Wall Street is losing confidence in central banks. | Source: REUTERS/Brendan McDermid
  • Coronavirus fears sent the Dow Jones over 3% lower on Friday as bond prices soared and yields crashed.
  • Despite plunging interest rate expectations, the Dow is still struggling to find any support.
  • Fed President James Bullard believes confidence in central banks is eroding rapidly.

The Dow Jones fell more than 800 points to close the week as investors continued to sour on stocks amid the spread of the coronavirus around the world.

Federal Reserve President James Bullard believes that central banks are losing credibility, a view confirmed by Deutsche Bank analysts who claim “policy failure is here.”

Dow Jones Falls as Crude Oil & Bond Yields Crash

The Dow Jones is crashing because stock market bulls are losing confidence in central banks. | Source: Yahoo Finance

All three major U.S. stock market indices accelerated their losses ahead of the closing bell.

Read the full story on CCN.com.