The US central bank indicated that the next interest rate move will most likely not be a hike.
Less than 20 minutes ago
The matter is updated throughout the trading day…
This is what it looks like during opening hours:
- The Dow Jones rose 0.6 percent.
- The technology index Nasdaq rises 0.98 percent.
- The collective index S&P 500 is up 0.74 percent.
On Wednesday, all three key indices rose significantly just after Federal Reserve Governor Jerome Powell began taking questions during the press conference following the interest rate decision. However, the joy was short-lived, and the rise evaporated towards the end of the day.
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Keeps the interest rate unchanged
As expected, the US central bank kept interest rates unchanged during yesterday’s interest rate decision.
The interest rate level in the USA will thus remain in the range of 5.25 to 5.50 per cent. It has been lying dormant there since July last year.
The Federal Reserve says there has been a lack of progress towards the two percent inflation target in recent months.
During the press conference afterwards, the governor of the central bank was asked, among other things, whether it might be appropriate to raise interest rates again.
– I think it is unlikely that the next interest rate movement will be a rise, says Powell.
Chief economist Marius Gonsholt Hov at Handelsbanken told E24 on Wednesday that Powell is deliberately dampening speculation that there may be another interest rate hike.
– The interest rate is sufficiently high to have a tightening effect, according to Powell, says Hov.
Apple presents numbers
After closing time on Wall Street on Thursday evening, Apple presents fresh quarterly figures.
The Apple share rose 1.65 percent ahead of the release of the figures.
On Tuesday, the online shopping giant Amazon presented figures, such as that the company increased its turnover to 143.3 billion dollars last quarter. The cloud service segment now accounts for a large part of Amazon’s growth.
Tech giants Meta, Microsoft and Alphabet all released figures last week. The quarterly reports lifted the markets last week after good results.
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Therefore, interest rate cuts can be utopian
Tags: Wall Street opens interest rate announcement Federal Reserve E24
