Wall Street stops dragged down by Fed rate hike

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The New York Stock Exchange closed lower on Wednesday, falling below forecasts of the US Federal Reserve (the Fed, the central bank) for more aggressive monetary policy than expected.

(The Fed raises interest rates by 75 basis points).

index The Dow Jones fell 1.70% to 30,183.78 points, while the technical Nasdaq fell 1.8% to 11,220.19 and the extended S&P 500 fell 1.71% A closed at 3,789.93 points.

Fed announces 0.75% increase for the third time in a row, continues its vigorous effort to curb highest inflation in 40 years, The increase – a fifth this year – leaves the reference rate between 3.0% and 3.25%.

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EFE

Markets were expecting another big interest rate hike, but the Fed had forecast further hikes if necessary.

(How Fed rate hikes affect Colombia).

“The narrative of higher rates for more bars has already been broken,” Art Hogan, an analyst at B Riley Wealth Management, commented on the market’s reaction to the forward announcement. “aggressive” than expected.

Recent Fed statements included higher rate projections for the end of 2023 and 2024 than earlier projections, Which indicates that he now sees the need for a longer monetary policy adjustment in the face of inflationary trends.

(Powell acknowledged that the rate hike would cause the labor market to deteriorate).

AFP



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