NEW YORK (AP) – Most American actions slipped on Wednesday after doubts increased to Wall Street to find out if the federal reserve will produce economy justice to interest rates by September.
The S&P 500 fell 0.1%, after its first loss after having established peaks of all time for six successive days. The industrial average of Dow Jones fell by 171 points, or 0.4%, and the composite Nasdaq increased by 0.1%.
The shares have estimated that the pressure of the increase in treasury yields on the bond market after the Federal Reserve voted to maintain its stable main interest rate. This decision could upset President Donald Trump, who put angry for lower interest rates, but it was widely expected at Wall Street.
What may have surprised the more investors is the president of the Fed, the president of Jerome Powell, the expectations of expectations that the Fed could reduce rates at his next meeting in September. In addition to Trump, two members of the Fed Committee also called for lower rates to reduce the pressure on the economy, and they dissident during Wednesday’s vote.
But Powell would not engage in a drop in September rates, emphasizing how inflation remains above the 2% target of the Fed, while the labor market always seems to be “in balance”.
A drop in rates would give the labor market and the overall economy, but this could also risk fueling inflation when Trump prices could be about to increase prices for American consumers. The Fed work is to maintain both the labor market and inflation in the right place.
Trump on Wednesday announced on Wednesday a price of 25% on imports from India, as well as an additional tax due to the purchases in India from Russian oil, from August 1. It is at this point that the rigorous prices that Trump offered for many other countries should also come into play, unless they reach trade agreements that reduce prices.
“The economy is in good shape, but it is in an unusual situation,” said Powell.
He also said that the Fed will receive two months of inflation data, the labor market and other economic indicators before meeting again to vote on rates in September. This could give the Fed plus the confidence that the risk of high inflation is no longer greater than the risk of a low labor market, a combination that would cause civil servants to the drop in rates.
Powell’s comments led merchants to reduce bets on a cup in September. They now see only 45% of this, against a probability of almost 65% earlier, according to data from the CME group.
The two -year -old Treasury Treasury ticket increased to 3.93% against 3.86% late Tuesday. It tends to follow the expectations of what the Fed will do with its interest rate overnight.
