After a calm Monday after JP Morgan took over First Republic Bank once rescued by the US authorities, losses have been imposed on Wall Street. The main index of the New York Stock Exchange fell some 500 points at the beginning of the session, more than 1.5%, on the eve of the decision of the Federal Reservethe country’s central bank, on the interest rates.
The rescue and sale of the First Republic was something predictable and even discounted, while now what predominates is the attention towards the monetary authority and your decision and messages about the price of moneyaccording to analysts.
With regard to the Fed’s monetary policy, the consensus discounts that the American central bank will raise interest rates 25 basis points, up to 5%-5.25%. Many traders think that the body will anticipate a pause in its monetary tightening, waiting for how the general price level evolves. But there are those who expect the Fed to leave the door open for more hikes if necessary.
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The European Central Bank (ECB) will also announce a new decision on interest rates on Thursday, after the president of the entity, Christine Lagarde, hinted for the first time the possibility that there is little ground left for the ascents.
In this environment, the downward trend has also prevailed in the Spanish Ibex 35, with a decrease of more than 1.5% and with the general index close to losing the level of 9,000 points.