NEW YORK (dpa-AFX) – The US Federal Reserve indicated on Wednesday the possibility of higher interest rates, thereby weighing on US stock markets. Under new boss Kevin Warsh, the Fed expects inflation to be significantly higher this year than before. And the central bank clearly put price stability first in its statement on the occasion of the interest rate decision, wrote Thomas Altmann, head of portfolio management at QC Partners. Investors would probably have to wait until 2028 for falling interest rates, which would support stocks over bonds.
The Dow Jones Industrial fell by 0.98 percent to 51,492.55 points after reaching a record high during trading. The market-wide S&P 500 lost 1.21 percent to 7,420.10 points, and the technology-heavy NASDAQ 100 selection index lost 0.99 percent to 29,670.95 points.
Because of the energy crisis and inflation concerns as a result of the Iran war, the Fed once again did not touch the key interest rate. Under Warsh there was no such thing as that demanded by US President Donald Trump Interest rate cut. On the contrary, there is now one on the market Interest rate increase considered realistic in October./la/men