Stock Market Slides After Fed Rate Cut Signals More Inflation

The major stock indexes fell sharply on Wednesday after the Federal Reserve cut interest rates by one quarter of a point but officials indicated that they see fewer cuts and more persistent inflation ahead. The Dow Jones Industrial Average fell by more than 500 points, or 1.2 percent. The Nasdaq Composite dropped two percent. The S&P 500 declined 1.5 percent. The Russell 2000 index of smaller companies fell by more than 2.6 percent.

The projections of Fed officials, which are released at ever other meeting of the Federal Open Market Committee, indicated a median forecast of just two cuts next years, down from four when the Fed last released projections in September. The Fed now sees the Fed funds rate at 3.9 percent at the end of next year, a half a point higher than the earlier projections. The Fed’s projections for further out also show higher rates. The Fed now sees its benchmark rate at 3.4 percent at the end of 2027, a year later than it had projected hitting that level just a few months ago. In September, the Fed was projecting a 2.9 percent rate at the end of 2027. The longer-run forecast was once again raised, this time going from 2.9 percent to 3.0 percent. The Fed has been moving this rate up steadily after years of forecasting a longer-run tendency of 2.5 percent. Similarly, the Fed now thinks inflation will remain higher for longer. The new projections show the median forecast for inflation at the end of next year is 2.5 percent, up from the September projection of 2.1 percent. What’s more, that’s higher than the Fed sees inflation this year, so the Fed is expecting inflation to go highe

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Meme Coin Market Cap Surpasses U.S. Quantum Stock MarketCryptocurrency analyst Charles Edwards highlights the disparity between the market capitalization of meme coins like Dogecoin and the entire U.S. quantum stock market. Edwards questions the sustainability of this trend, suggesting it may not last long.
La source: Utoday_en - 🏆 295. / 63 Lire la suite »

Market Volatility: Is the US Stock Market in a Bubble?The article discusses the current state of the US stock market, highlighting the record highs of the Nasdaq, the Dow's recent losing streak, and the flat performance of the S&P 500. It analyzes the market's exuberance, potential for a pullback, and the attractiveness of traditional S&P 500 investments.
La source: NBCNewYork - 🏆 270. / 63 Lire la suite »

Crypto market sheds $180 billion in a day as bitcoin slides further from $100,000 milestoneBitcoin’s price retreated further from the psychologically important $100,000 milestone as investors booked profits from the token’s post-U.S.…
La source: NBCDFW - 🏆 288. / 63 Lire la suite »

The ripple effect of 5% treasury yields: How higher rates shape stock market dynamicsRecently – we have been discussing the impact of higher rates on global stock markets - here is a quick analysis of what a 5% - 10-year Treasury yield would have on stocks.
La source: FXStreetNews - 🏆 14. / 72 Lire la suite »