U.S. stocks crashed Wednesday afternoon following minutes of a recent Federal Reserve meeting highlighting officials' determination to raise interest rates to fight inflation.
Central Bank of America increased its interest rate by 0.25 percent last month, but minutes show a few participants would like to increase 0.5 percent if it were not for the uncertainty caused by the Russian invasion of Ukraine. The "majority" of them said that at least a 0.5 percent increase would be appropriate later in the year.
The European Stoxx 600 index fell 1.5 percent, its worst daily decline for almost a month, while the Hong Kong Hang Seng index fell 1.9 percent and the Japanese Topix fell 1.3 percent.
Government debt also came under pressure, when the US Treasury's 10-year yield added 0.06 percent to 2.61 percent, as German and Italian yields soared. The yield on government bonds, which support banks' mortgage rates, is rising as prices fall.
U.S. stocks crashed Wednesday afternoon following minutes of a recent Federal Reserve meeting highlighting officials' determination to raise interest rates to fight inflation. Central Bank of America increased its interest rate by 0.25 percent last month, but minutes show a few participants would like to increase 0.5 percent if it were not for the uncertainty caused by the Russian invasion of Ukraine. The "majority" of them said that at least a 0.5 percent increase would be appropriate later in the year.
The minutes also show officials scheming plans to launch disposal of assets from the Fed’s balance sheet at a faster pace than its previous attempt in 2017. Lael Brainard, governor of the Fed, on Tuesday said the central bank could quickly reduce its $ 9tn balance from. May. The S&P 500 stock index was down 1.1 percent, while the Nasdaq Composite technology-driven index fell 2.1 percent, after consolidating significant losses made immediately after the minutes of publication. This decline follows what has already been a difficult day for investors in Europe and Asia.
The European Stoxx 600 index fell 1.5 percent, its worst daily decline for almost a month, while the Hong Kong Hang Seng index fell 1.9 percent and the Japanese Topix fell 1.3 percent. Government debt also came under pressure, when the US Treasury's 10-year yield added 0.06 percent to 2.61 percent, as German and Italian yields soared. The yield on government bonds, which support banks' mortgage rates, is rising as prices fall.
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Courtesy Grizler.com
