At 12.30pm AEDT the benchmarkwas down 137 points or 1.96 per cent to 6849.50 points, having trended downward since the market opened.
Investors are reacting to news that the US Federal Reserve had passed a historic fourth-straight 75 basis point rate hike, in a bid to tackle the nation's soaring level of inflation.At the time of publishing the ASX200 was down 1.93 per cent, having recovered slightly from an early plunge.Here in Australia, the cash rate is 2.85 per cent, while annual inflation is currently sitting at 7.3 per cent with forecasts it will hit 8 per cent by the end of 2022.
All sectors of the Australian market fell, with technology and mining feeling the worst affected in the plunge.Aussie shares plunged in early trade as investors spooked over the implication of a US recession.The Federal Reserve approved a fourth-straight rate hike of three-quarters of a percentage point as part of its aggressive battle to bring down the white-hot inflation that is plaguing the US economy.
The supersized hike brings the central bank's benchmark lending rate to a new target range of 3.75 per cent to 4 per cent.Wednesday's decision, which comes at the end of a two-day policy meeting of the Federal Open Market Committee, marks the Fed's toughest policy move since the 1980s and will likely deepen the economic pain for millions of American businesses and households by pushing up the cost of borrowing even further.
He also reiterated his commitment to bringing down inflation and his stance that persistent, entrenched inflation will cause greater economic pain than a recession.
Tough luck, suckers. However gold and Bitcoin are up.
They were already in one, don’t let them changing a definition fool you FFS 💩