The US Federal Reserve is expected to announce tonight (Wednesday) a 0.75 percent rise in interest rates, the highest rise since 1994.
Wall Street is eagerly awaiting the move after trading recorded another day of price declines last night with the Dow Jones falling in -0.5 percent amid gloomy forecasts for the U.S. economy coupled with alarming inflation figures around 8.6 percent in May, the highest figure since December 1981.
The Wall Street Journal reports that many investors argue that the worst in the markets may end soon, given the prolonged declines in many sectors of the markets this year and the overall healthy state of the United States.
As mentioned, the prolonged price declines in the US together with the high inflation figures, as well as the state of war in Ukraine after the Russian invasion which threatens to create an international food crisis and is already causing sharp rises in gas prices, are warning signs that the global economy may enter recession. , Which includes the 500 largest companies, lost 22 percent of its value last May.
The Fed's move to raise interest rates in the economy is intended to attack the general rise in prices plaguing America, a phenomenon that has become more severe than officials in the Biden administration initially estimated.
Federal Reserve Chairman Jerome Powell hinted a month ago that “what we need to see is clear and convincing evidence that half inflation is declining and inflation is falling.
And if we do not see it, then we will have to consider moving to a more aggressive form, "he clarified.
The Federal Reserve is a private institution that serves as the central bank of the United States. It was founded in 1913 and its role is to maintain economic stability, determine the fiscal policy of the administration and supervise the economic institutions in the country.
Were we wrong?
Fixed!
If you found an error in the article, we'll be happy for you to share it with us