Dow futures soar more than 100 points as investors ease recession concerns. After Federal Reserve Chairman Jerome Powell (Fed) stated that the Fed will conduct monetary policy cautiously. by assessing potential risks to the economy
As of 7:26 p.m. Thai time, the Dow Jones futures rose 116 points or 0.34% to 34,493 points.
At the Fed’s annual meeting in Jackson Hole, Wyoming, on Friday. Mr Powell said Inflation is still too high. And the Fed is preparing to continue raising interest rates to curb inflation.
However, Mr Powell added that The Fed needs to be cautious in monetary policy. by evaluating the information the Fed receives Including trends and risks that may occur.
“Too little action will deepen inflation above the Fed’s target. And will make the Fed use monetary policy to remove inflation from the economy. which will affect employment.”
“The over-processing part is going to hurt the economy unnecessarily,” Powell said.
Mr. Powell’s statement was different from the Jackson meeting. Hole last year to which he sternly said, The Fed’s mission to fight inflation is not finished yet. The Fed will continue to tighten monetary policy. This may affect the economic expansion and the labor market. The Wall Street market crashed heavily after the statement.
“We will continue to raise interest rates. Until we are confident that our mission will be successful. Households and businesses could be affected as the Fed continues to raise interest rates. But failure to stabilize prices will have a bigger impact,” Powell said at the Jackson conference. Hole last year
Investors predict that Fed to Hold Rates at September Meeting and poured more than 50% of its weight in the forecast that The Fed will raise interest rates by 0.25% at its November meeting. and maintain the interest rate before reducing the interest rate by 0.25% in March 2024
In addition, the Federal Reserve Bank of Atlanta released its latest GDPNow forecast model showing that The US economy grew 5.9% in the third quarter of 2023 after posting 2.0% and 2.4% growth in Q1 and Q2 respectively.
If the US Gross Domestic Product (GDP) grew 5.9% in the third quarter as expected. It would be more than double the growth from the second quarter and hit the highest level since the fourth quarter of 2021.
The market is keeping an eye on the 2Q2023 GDP figure (2nd estimate) that will be released on Wednesday. and the Personal Consumption Expenditure (PCE) Price Index on Thursday. Including non-farm payrolls figures on Friday.
2023-08-28 13:01:34
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