Reporters reported that The Dow Jones Industrial Average has rebounded more than 200 points this morning. The trading atmosphere has recovered after the US stock market plunged sharply last week. This was largely due to concerns about the Federal Reserve’s (Fed) interest rate hike outlook.
Dow futures index at 9:38 a.m. Thai time rose to 34,377 points, a gain of 202.00 points, or 0.59%, with the trading atmosphere recovering after US stock markets plunged sharply last week. This was largely due to concerns about the Federal Reserve’s (Fed) interest rate hike outlook.
The Dow, the New York Stock Exchange, closed down more than 400 points on Friday (Jan 21, 2022), and fell for the sixth straight day, the longest straight decline since February. 2020 parts for the whole last week The Dow was down 4.6%, the S&P500 was down 5.7% and the Nasdaq was down 7.6%.
Trading conditions on the New York Stock Exchange last week. was heavily pressured by the concern that The Fed may raise interest rates in March. 2022, especially when Fed Governor Lael Bernard told the Senate Banking Committee on Jan. 13, “I think the Fed is in a state of that is ready to raise interest rates as soon as the quantitative easing (QE) bond purchase program ends.”
Mrs. Bernard’s statement signaled the possibility that The Fed will likely raise interest rates at its March 15-16 meeting, as the Federal Reserve’s board previously announced it would increase its QE limit to $30 billion a month. Starting from Jan. By 2022, the Fed’s QE limit will double from $15 billion a month. This will result in the Fed ending QE in March 2022.
Goldman Sachs economist David Merkel predicted a sharp increase in inflation. It could pressure the Fed to raise interest rates four times this year, with the Fed expected to raise interest rates in March, June, September and December.