U.S. Stock Futures Are Lower With Hiking Interest Rates

U.S. stock futures are lower: The prospects of the Fed shrinking its balance sheet alongside hiking interest rates are driving equity futures down in morning trading.  The 10y treasury yield hit 2.65% the highest since March 2019 and the yield curve is higher.  Yesterday’s hawkish comments from Lael Brainard are sending global markets lower.  Investors are concerned about the possibility of higher rates producing an economic slowdown as opposed to a soft landing.  Last month’s FOMC minutes will be released this afternoon and might shed additional details on policy changes.  High yield and investment grade credit spreads have narrowed over the past few days.