The investors focus on the outlook for borrowing costs after Federal Reserve Chairman Jerome Powellwill indicate the possibility of needing further increases in interest rates.
On the last day of the week, the New York Stock Exchange rebounds, after processing Powell’s statements. Thus, the Dow Jones registered an increase of 0.4%, the Nasdaq, a technology index, 0.3%, and the S&P 500 0.4%.
The market adjusts its expectations, now reflecting a position more aggressive by the Fed. The odds that interest rates will remain at current levels at the end of January, after two additional Fed decisions, fall below 80%, compared to 90% last week.
Wall Street digests Jerome Powell’s words
Comments are expected throughout the day from other Federal Reserve officials, including Fed Chairs Lorie Logan, Raphael Bostic and Mary Daly. Dallas, Atlanta and San Franciscorespectively, which could have an impact on the markets.
During a conference in Washington on Thursday, Powell stated: “If it is appropriate to tighten monetary policy further, we will not hesitate to do so“.
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