(Morning News) Jerome Powell, chairman of the Federal Reserve, said that the 25th basis points rate hikes in March this year are still appropriate, making the stock market excited and the stock market three major.The index rebounded significantly after Powell's speech.
Powell made the above conversation on Wednesday (March 2) on the Parliament on the Federal Reserve's upcoming March meeting.In a speech for more than three hours, Powell was surrounded by various issues of various legislators about the increase in living costs.Powell also said at the meeting that if inflation did not begin to alleviate, the central bank may take tough measures.
Powell told the House of Representatives Financial Group: "I tend to propose and support 25 basis points to raise interest rates later this month.At the meeting, more positive measures were taken to increase the interest rate of federal funds by more than 25 basis points. "
Powell also said that it is too early to affect Russia's invasion of Ukraine how to affect US economic and policies.However, he acknowledged that this aggression may trigger the long -term reorganization of international relations, which may also reshape the Western European economy.
Powell said the Fed does not want to increase market uncertainty or volatility.Powell's remarks also means that when the Federal Reserve will meet from March 15th to 16th this year, I believe that it will not raise interest rates for half a percentage point or more.
Before, the major banks in Wall Street firmly believed that the Federal Reserve will raise interest rates to as many as seven times this year, and the rate hike in the meeting in March must not be light.Among them, Bank of America and Goldman Sachs are expected to raise the benchmark interest rate from the current zero to 0.25 % to 2 % by the end of the year, and JPMORON Chase (JPMorgan Chase) will be raised.The interest rate is expected to reach 2 % in early 2023.Their main argument is that the surge of inflation will force the Fed to take action.
Powell's conversation overnight and the predictions of the market before the market are still 'slight', making the market very secure.After speaking with the Poole 500 index at Powell, it immediately rebounded from 4283, and closed the market at 4386.54 points.The Nasdaq 100 Index, which is mainly technology stocks, also raised 1.70 % to close the market at 14243.69.The Dow Jones Index also returned to the positive number area, from 596.40 overnight, and the closed market 33891.35.
