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Market Impact: Wall Street Falls After Powell Rate Announcements

Market Impact: Wall Street Falls After Powell Rate Announcements

The two-year Treasury yield, which better reflects near-term rate expectations, rose to its highest level since 2007, 4.96%.

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The US stock indices fall this Tuesday because the testimony before Congress of the president of the Federal Reserve, Jerome Powell hinted at a tougher monetary policy path in the US.

Find out more – Dollar today and dollar blue today LIVE: how much they operate this Tuesday, March 7

The Industrial Average Dow Jones it loses 197.91 points, or 0.59%, to 33,233.53 units; the S&P500 index subtracts 35.53 points, or 0.88%, to 4,012.89 units; and the Nasdaq Composite fell 108.83 points, or 0.93%, to 11,566.91.

The Fed is likely to have to raise interest rates more than expected in response to recent strong data and is prepared to take bigger steps if the “totality” of the incoming data suggests tougher action is needed to rein in inflation. inflation, Powell told a panel of lawmakers.

These were his first remarks since inflation spiked unexpectedly in January and the US government reported an unusually large increase in payrolls for that month.

Traders sharply increased their bets on a 50 basis point rate hike in March, estimating a probability of close to 40% for such a decision from 23% prior to the statements.

The two-year Treasury yield, which better reflects near-term rate expectations, rose to its highest level since 2007, 4.96%.

Source: Ambito

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