Rate Hike Statement from Powell Led To Fall In the Market
All the markets were doing well before the meeting of the Federal Open Market Committee (FOMC). After the statement from Jerome Powell, Central Bank lead, the global market dipped in value
In the highly anticipated meeting of the Federal Open Market Company (FOMC), the members unanimously decided to approve the decision to keep the rates at near-zero levels.
In a statement issued by FOMC, it said “With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for federal funds.” ‘Soon’ here was the key word as it indicated that for now, the baseline interest rate range would remain the same.
After the meeting, Fed Chairman Jerome Powell also gave a statement, in which he explained that the rate may rise in March. Powell also said that getting down the balance sheet will require some time.
After the statement from Fed and Powell, stocks, crypto market, precious metals witnessed a dip in their value.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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