The leaders of the Fed stressed that “inflation is high and mainly reflects factors that should be temporary.” Prices rose 4.4% in the 12 months to September in the United States, a maximum since 1991, according to the PCE index. “The imbalances in supply and demand due to the pandemic and the reopening of the economy contributed to significant price increases in some sectors,” they summarized.
After hearing the news of the reduction of monetary stimulus by the Fed, the main indices reversed trend and were trading higher. The Dow Jones Industrial Average rises 0.2%, to 36,123.96 units, while the S&P 500 grows 0.5%, to 4,652.79 units. The Nasdaq Composite rose 0.9% to 15,784.30 points.
As European stock markets rose to an all-time high for the second day in a row, after the major Wall Street indices also hit records on Tuesday.
Meanwhile, the president of the European Central Bank (ECB), Christine Lagarde, rejected the market bets on an increase in interest rates as early as October next year, saying it was “very unlikely” that such a move would occur. in 2022. Yields on euro zone government debt fell and Germany’s 10-year Bund yield fell to a one-month low of -0.19%.
Source From: Ambito
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