Shares of industrial and transportation companies sank as Federal Reserve officials indicated they expect to raise interest rates by late 2023, sooner than they anticipated in March, as the economy recovers rapidly from the effects of the pandemic and inflation heats up.
Their median projection showed they anticipate lifting their benchmark rate to 0.6% from near zero by the end of 2023. In March they had expected to hold it steady through that year.
In corporate news, Toshiba's board chairman, facing opposition from shareholder-advisory firms, said he would consider handing over the reins but only after setting Toshiba on the right path with a revamped board and new CEO. Nonexecutive Chairman Osamu Nagayama is up for re-election at Toshiba's annual shareholder meeting on June 25 after a turbulent spring that included a chief executive officer's departure and clashes with foreign-based shareholders.
Full Truck Alliance, a Chinese startup that provides an Uber-like service for the road-haulage industry, aims to raise as much as $1.57 billion from its U.S. initial public offering, a filing showed. The company, also known as Manbang Group, runs a mobile app connecting truck drivers to businesses that need to transport goods within China.
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(END) Dow Jones Newswires
June 16, 2021 17:01 ET (21:01 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.