Stocks fall sharply as Fed's aggressive stance on future hikes rattles investors

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Shaken by the Federal Reserve's aggressive stance this week on rates hikes to come, U.S. stocks fell sharply on Friday, pointing major markets toward another weekly loss.

Other analysts anticipate more disagreement on the correct approach to lowering inflation over the next year.

Like the Fed, central bank officials in Europe said inflation is not yet corralled and that more rate hikes are coming. The European Central Bank, Bank of England, and Switzerland's central bank all pushed through half-point rate hikes on Thursday. On Thursday, the S&P 500 fell 2.5%, the tech-heavy Nasdaq composite lost 3.2% and the Dow gave back 2.2%. Barring a strong reversal, major indexes will finish with losses for the second straight week.has boosted hopes for an end to massive disruptions from lockdowns and other strict measures to prevent infections. But signs of sharply rising case numbers have raised uncertainty, with some alarmed over the possibility that the pandemic will continue to drag on the economy.

"The slowdown will be accompanied by investor risk aversion, which will further undermine commodity prices. However, as global activity growth starts to recover from around the second quarter, we expect improved commodity demand growth and investor risk appetite to push prices higher," she said.The central bank has been fighting to lower inflation at the same time that pockets of the economy, includingand consumer spending, remain strong.

 

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Rates needed to go up, but raising then too much is equally detrimental. Need to find balance.

It's time to buy!

thank a dem

Don’t fight the Fed…

Thanks Joe...🤬

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