Banks, lenders and other financial companies ticked down as traders continued to debate the outlook for interest rates. Federal Reserve Bank of Dallas President Robert Kaplan urged caution on raising interest rates further given muted inflation. Many analysts say that the Treasury markets are behaving as if participants are highly skeptical the Fed will stick to its rate-hike plan. "The linkage between monetary policy and financial markets is a two-way street, complicating how the FOMC conducts policy," said analysts at brokerage Bank of America Merrill Lynch Global Research, in a note to clients. "Markets remain skeptical that the data will rebound while the Fed remains steadfastly confident in its outlook. The evolution of data will likely dictate the next policy steps."
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(END) Dow Jones Newswires
June 16, 2017 16:52 ET (20:52 GMT)