Fed Chairman Jerome Powell Addresses Global Markets in his Speech
After Fed Chairman Jerome Powell‘s statement, “It would probably be better for us to raise rates a little earlier,” he again excluded a 75 basis point rate hike, while global markets were supported by this statement.
United States stock indices Fed Chairman Jerome Powell stated that a 75 basis point interest rate increase is not evaluated at this stage. On Thursday, the S&P 500 fell 0.13%, while the Nasdaq 100 fell 0.18%.
MSCI Asia Pacific Index gains 1.38%
China and particularly SoftBank Group Corp, has benefited from the growth. The climb in technology stocks in Japan, especially in the stock market, had an impact. The Bloomberg Dollar Index is down 0.15%, but it’s making progress towards the longest weekly streak since 2018.
US Federal Reserve Chairman Jerome Powell stated that it would perhaps be a more positive move for the Fed to start raising interest rates before March, while admitting that they were behind the curve in a sense. Answering questions on Thursday’s Marketplace radio show, Powell said: “It would probably be better for us if we raised the rates a little earlier. I’m not sure how much difference it would make, but we needed to make real-time decisions based on what we knew then and we did do our best.”
The US Federal Reserve reiterated that 50 basis point rate hikes in June and July are appropriate if the economy is progressing as predicted, adding that they are prepared to do “less” if things go well and “more” if things get worse.