Wall Street closes lower with hints of Fed rate hike

NEW YORK

Two Federal Reserve officials hinted Thursday the bank could soon increase interest rates – a sentiment that pushed Wall Street lower at the close of markets.

Investors began a sell-off after Kansas City Fed President Esther George said the time is approaching when a hike would necessary. "I do think it is time to move that rate,” she told the CNBC network.

The head of the Dallas Fed, Robert Kaplan, also believed the bank would be "moving toward being able to take another step," on a possible rate hike.

American markets didn’t seem to like the comments.

The Dow Jones ended the day at 18,448, losing 33 points. The S&P 500 was down three points to close at 2,172 and the Nasdaq lost five points to 5,212.

The financial world is now focused on Fed Chair Janet Yellen's speech Friday in Jackson Hole, Wyoming.

Wall Street may see more sell-offs if the Yellen delivers positive comments about raising rates this year, according to analysts.