Europe’s Stoxx 600 index fell 0.5% at one point, with food and beverage shares seeing the deepest decline of 1.7%.
Asia-Pacific stock markets were also in the red, with Japan’s Nikkei 225 down 0.2%, South Korea’s Kospi down 0.7% and China’s CSI 300 down 0.7%. In the US, the S&P 500 index lost its eight-day winning streak when it fell 0.8%, while the Nasdaq Composite and Dow Jones Industrial Average “vanished” 0.9% and 0.6% respectively.
A day earlier, Fed Chairman Jerome Powell confirmed that he and policymakers are encouraged that inflation is slowing, but they are not sure whether they have taken drastic enough action to maintain the trend. .
Asian and European stock markets fell after the Fed announced it would raise interest rates. Photo: Reuters
“The Federal Open Market Committee is committed to tightly controlling monetary policy to reduce inflation to 2%. We do not believe that such a policy has been achieved” – Mr. Powell said at a conference. International Monetary Fund Conference in Washington.
according to station cnbcInflation in the US is currently well below the peak in the first 6 months of 2022, but still well above the Fed’s long-term target.
In the strongest monetary policy since the early 1980s, the FED raised interest rates 11 consecutive times, aiming to raise the base interest rate from near 0% to 5.25% – 5.5%.
Jeffrey Roach, economist at LPL Financial Company (USA), agreed, saying, “The Fed Chairman has issued a warning to investors who are too optimistic about an interest rate cut next year.” At that time, the Fed confirmed that it would definitely continue to raise interest rates if inflation skyrocketed again.