-2.6 C
Friday, December 9, 2022

Wall Street sank more than 3% after the Fed’s rate hike

Must read

- Advertisement -

The Fed raised the interest rate by another 0.75 percentage point. The need to combat inflation was stronger than expectations. Although the Federal Reserve faces a difficult balance in the coming months to control prices and prevent the deterioration of the economy, the Open Market Committee (FOMC) postpones for the next few months the moderation of the tightening of monetary policy. The members of the institution They agreed for the fourth time in the year to raise rates by 75 basic points, until placing them in the range of 3.75%-4%, maximums of 2008.

Investors widely anticipated a 75 basis point rate hike, as they waited for the Fed to show signs of starting to taper rate hikes at its December meeting.

- Advertisement -

Nevertheless, Powell’s comments that it is “very premature” to think about pausing rate hikes sent shares down sharply.

“Maybe it’s a frustrating moment. I don’t think he should have done it the way he did, but I understand why he did it and in the big picture, he’s doing the right thing at the moment,” Stephen Massocca said. , senior vice president of Wedbush Securities in San Francisco.

- Advertisement -

The S&P 500 had been down before the announcement, as the ADP National Employment Report showed US private payrolls rose more than expected in October, giving the Fed more reason to continue on an aggressive path of rate hikes.

Source: Ambito

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

Latest article