Wall Street cautiously ahead of key Fed rate decision

The New York Stock Exchange opens the session on Wednesday, March 22 with caution and slight risesstaying close to equilibrium while waiting for the Federal Reserve of the United States makes a decision on the reference rate.

The index Dow Jones It is up 0.1%, or 26 points, to 32,552, the tech-heavy Nasdaq is up 0.2% to 11,884, and the S&P 500 is up 0.2% to 4,010.

This afternoon the definitions of the Fed on interest rate hikes. After a year of permanent rate increases as a result of the increase in the inflationthe body faces a very complex scenario due to the bank collapse that transferred fears of a financial crisis to the entire system.

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On the one hand, if the interest rate increases by a large magnitude, runs the risk of severely affecting the level of activity, asset prices and disable incentives for investment, which could lead to the start of a recessive cycle.

On the other hand, if you choose a path of adjustment of a slower pace and size, you face the danger of having to live with a rate of inflation for a long time.which in the long term will also affect the level of activity, the price of assets, the value of the dollar, and may also end in a recession.

The Most analysts believe that the institution will continue raising its official interest rates by 0.25 percentage pointsto just below 5%, as it did at the last meeting.

European stock markets, for their part, rise slightly. Paris rose 0.5%, London 0.5%, Frankfurt 0.6%, Milan fell 0.1% and Madrid rose 0.2%.

In the bond market, Government bond rates rose again: the 10-year German bond, the reference maturity, stood at 2.32%, the highest for a week.