Asian stock markets declined Thursday after the Federal Reserve said its economists expect a "mild recession" this year.Wall Street closed lower Wednesday after notes from the central bank's latest meeting said its economists expect lower bank lending to cause a "mild recession." Traders already saw an increasing likelihood of at least a brief U.S. recession this year following interest rate hikes to cool inflation.
Traders have been worried the Fed and other central banks in Europe and Asia might tip the global economy into recession as they try to extinguish inflation that is near multi-decade highs. The Dow Jones Industrial Average slipped 38.29, or 0.1%, to 33,646.50. The Nasdaq composite lost 102.54, or 0.9%, to 11,929.34.
The bond market shows nervousness about a potential recession. The 10-year Treasury yield slipped to 3.41% from 3.43% late Tuesday. The two-year Treasury yield, which moves more on expectations for the Fed, fell to 3.96% from 4.03%.