Fed Chairman Ball.

(AFP)

[Instant News/Comprehensive Report] The US Federal Reserve announced on Wednesday that the benchmark interest rate will be raised by 3 yards to 3 to 3.25%, the highest since 2008, and US stocks fell again.

According to comprehensive media reports, the U.S. stock market fluctuated as soon as the interest rate hike news came out. As Chairman Jerome Powell talked about interest rates and the economic outlook, market volatility intensified. Some traders said they were worried that the Federal Reserve would take a hawkish stance. It will take longer than expected, and it is estimated that there are two meetings left this year, or more than 1.25% of interest rate hikes.

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Powell said that since the central bank's annual meeting, his main point of view has not changed, and will firmly reduce the inflation rate to 2%. At present, it is estimated that the Fed will continue to raise interest rates until interest rates reach 4.6%, and many others The expected rate cut is expected to wait until 2024.

In addition, the Federal Reserve also updated its economic forecast, pointing out that the GDP growth rate in 2022 will slow to 0.2%, and it is expected to reach a growth rate of 1.8% after a slight revision in the following years. This data is compared with the June forecast. That's a lot lower, when the economy was forecast to grow at a rate of 1.7%.

Powell said frankly that a recession is possible, especially if the Fed will continue and monetary tightening must be implemented. Powell said: "No one knows whether the whole process will lead to a recession." Some experts estimate that personal consumption expenditures this year The price index (PCE) is forecast to fall to 5.4% before falling back to the 2% target in 2025.

In addition, Ball also talked about the housing market. He believes that after a period of soaring prices, the U.S. housing market may enter a stage of adjustment. Ball said that housing prices are rising too fast, which makes it impossible for many Americans to own homes in the long run. See, supply and demand coordination can make housing prices rise reasonably and people can buy houses again.

The rate hike has had an impact on the housing market, including slowing sales and slightly lower prices, although Ball noted that housing inflation remains high.

The Dow Jones Industrial Average fell 522.45 points, or 1.70%, to 30,183.78.

The S&P 500 fell 66 points, or 1.71%, to 3,789.93.

The Nasdaq Composite fell 204.86 points, or 1.79%, to 11,220.19.

The Philadelphia Semiconductor Index fell 24.54 points, or 0.97%, to 2,514.96.

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