The S&P 500 shed more than $800 billion on Wednesday, falling 2.5 percent in a day’s trading after the Federal Reserve announced that it would raise interest rates by 75 basis points. Despite the stock market’s reaction, the Fed is not done raising rates and tightening, according to Gary Wagner, editor of TheGoldForecast.com.
The Fed is tightening in response to high inflation, which was 8.2 percent in September. Wagner claimed that had the Fed started raising rates in 2021, economic “pain” could have been avoided. “It’s like looking at a basket of rotten apples and you pick out the least rotten apple, and that’s the dollar,” Wagner explained. “If you’re an international investor looking to park money, you’re going to go to our debt instruments, and not debt instruments of other countries. That fact is giving us U.S. dollar strength.”
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »