FRANKFURT (dpa-AFX) – Before the US Federal Reserve’s interest rate decision on Wednesday evening, the German stock market went into reverse. The DAX temporarily fell to its lowest level in a week and lost 0.29 percent to 24,822.79 points at the close of trading. The day before, the leading German index briefly rose above the much-noticed mark of 25,000 points, but ultimately turned back down again. The MDAX of medium-sized stock exchange stocks fell by 0.28 percent to 31,640.37 points in the middle of the week.
According to experts, the US Federal Reserve will not lower the key interest rate further this evening. In December it reduced it by 0.25 percentage points, and last year by a total of 0.75 points. Despite persistent inflation, the easing was justified by a weakening labor market.
In view of the Financial markets But above all there is the fight for the independence of the Fed in the wake of the upcoming change in leadership. US President Donald Trump has been putting strong pressure on Federal Reserve Chairman Jerome Powell for months. The conflict recently escalated with the initiation of legal measures against him, whose term of office ends in May. Trump’s violent attacks and his calls for interest rate cuts are unsettling the financial markets. “The pause in interest rate cuts, which has been foreseeable for some time now, is a good opportunity for the Fed, as it allows it to demonstrate its independence,” commented Commerzbank economist Bernd Weidensteiner./bek/he
