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Last week ended with a broad rise for the three leading stock indices on Wall Street. The rise was so strong that the month of May finally ended with a flat development for the S&P 500 and Dow Jones, while the Nasdaq fell around three percent.
Monday was American Memorial Day, a national holiday, and Tuesday was therefore the first trading day of the week. The strong upturn from Friday did not seem to continue into this stock market week at the opening on Tuesday, where all those indices fell close to one percent.
By eight o’clock Norwegian time, on the other hand, the indices had recovered sharply, and the day ended with a cautious fall.
- The broad S&P 500 index ended down 0.53 percent
- Industrial-heavy Dow Jones ended down 0.67 percent
- The technology exchange Nasdaq ended down 0.41 percent.
Waller wants to raise interest rates
On Wednesday last week, the minutes came from the most recent interest rate meeting of the US Federal Reserve (Fed). It emerged that the central bank is ready to continue with interest rate increases of 50 basis points at a time for the next two interest rate increases.
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On Monday, Fed Governor Christopher Waller went out and argued that the Fed should continue to raise interest rates by 50 basis points at a time, until inflation begins to approach the inflation target again.
“I will not take interest rate increases of 50 basis points off the table until I see inflation coming closer to our target of two percent,” Waller said in a speech at Goethe University Frankfurt, Germany.
As the minutes from the previous monetary policy meeting show, this is not the majority view in the Fed. The majority rather envisage double interest rate increases in June and July, in order to then be able to adopt a more flexible attitude later in the autumn. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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