NewsyList

Wall Street celebrated the Fed’s determination against inflation and soared more than 4%

Powell told a news conference after the Fed’s announcement that he did not believe the US economy is currently in a recession, but that it was slowing.

He also stated that the lack of clear visibility on the future of the economy means that the US central bank can provide reliable guidance on the direction of its monetary policy only on a “meeting-by-meeting” basis.

Powell’s willingness to let the data guide them in the future was something that pleased the market. It didn’t automatically say we needed another rate hike,” said Peter Tuz, chairman of Chase Investment Counsel.

“It was a reassuring statement that comes after a day that saw some earnings and revenues that were better than expected, although expectations were very moderate“, he added.

The news added to upbeat quarterly reports from Microsoft Corp and Alphabet Inc, which had given investors confidence about earnings season.

The Fed’s decision on whether to make a third consecutive 75 basis point hike – or something else – will depend on whether there is firm evidence that inflation is starting to ease, Powell said. at a news conference following the central bank’s latest two-day monetary policy meeting.

The biggest rise comes after the US Federal Reserve announced on Tuesday the fourth consecutive rise in its interest rates, at 0.75 percentage pointsto take them to 2,25-2,50%and expects to continue this movement in the face of inflation that remains high.

“Recent spending (consumption) and production indicators moderated. But job creation remained robust in recent months, and the unemployment rate remains low,” the central bank summed up in announcing its decision on interest rates, in a statement released at the end of its monetary policy committee (FOMC) meeting that began on Tuesday.

See also  Not enough green electricity for e-cars: Researcher: Electricity mix is ​​calculated incorrectly

After the announcements of balances, on this Wednesday Microsoft Corp stock jumped 6.7% after anticipating revenue to grow at a double-digit percentage rate this fiscal year, thanks to demand for cloud computing services.

Alphabet soared 7.8%as better-than-expected sales from Google search ads came as a relief, after last week’s warning from the social media company Snap Inc had raised fears of a slowdown in the advertising market.

Meta Platforms stock jumped 6.6% before its quarterly report after the markets close, while those of Apple Inc reached 3.4% and those of Amazon.com Inc gained 5.4%.

Share:

Facebook
Twitter
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Social Media

Most Popular

On Key

Related Posts