The Dow Jones Industrial Average fell more than 100 points after Federal Reserve Chairman Jerome Powell signaled he was willing to raise interest rates to curb inflation.
As of 9:36 p.m. Thai time, the Dow Jones Industrial Average was 33,806.52 points, decreasing 120.22 points or 0.35%.
Chip stocks fell today. Led by Nvidia (Nvidia) after the Wall Street Journal reported that US to introduce new measures to limit chip exports to China which is expected to start operating as early as July
Mr Powell signaled a rate hike in July and September to stem inflation. and extract heat in the labor market
“If you look at the data for the past quarter, You will find expansion stronger than expected. The labor market is tighter than expected. and higher-than-expected inflation This tells us that Although the policies we use are strict But it may not be strict enough. And it didn’t take long enough.”
“We believe there will be several more rate hikes. This is due to a very strong labor market,” Powell said at the central bank’s monetary policy talks. The European Central Bank (ECB) held in Sintra. Portugal today
On the question that the Fed will raise interest rates from now on at every other meeting. After the interest rate hike is suspended this month or not. Mr Powell said “This may or may not happen. But I do not rule out the possibility of two rate hikes in a row.”
In addition, Mr Powell stated that Most Fed officials expect at least two more rate hikes this year.
In his address to Congress last week Powell has reiterated that the Fed will continue to raise interest rates to stem inflation. And signaled that the Fed will raise interest rates twice more to 5.50-5.75% by the end of the year.
Investors are keeping an eye on the Personal Consumption Expenditure (PCE) Price Index, which will be released on Friday. The index is a gauge of inflation that the Fed cares about. which can detect changes in consumer behavior and covers a broader range of prices for goods and services than the Consumer Price Index (CPI).
2023-06-28 14:48:04
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