Facing the rising inflation again, Fed took decisive action, and once again raises interest rates 75 points.
For US financial capitalists, the Fed's continuous interest rate hike can hit the currency exchange rates of other countries, cause international capital flows, and make it more convenient for global wealth harvesting.
But unexpectedly, this time, the Fed rate hike did not get the expected result. The yen not only did not fall, but rose, but other currencies also performed similarly. Finally, the one that was most hurt was US stock .
01, index
in the early morning, Dow Jones Industrial Index 's largest decline reached 932 points.
The Federal Reserve's decision to raise interest rates was announced at 2 a.m. today. Subsequently, Powell further elaborated on some of the Fed's views on inflation and future interest rate hikes through a press conference.
Because everyone did not find the basis for the future Fed policy shift from Powell's speech, the information we obtained was that the final interest rate level next year will be further improved than previous expectations.
There is no doubt that this hawkish speech has hit the financial market a big blow. From announcing the decision to raise interest rates to Powell's speech, in just half an hour, the US stock market completed a huge transformation from surprise to shock.
When the decision to raise interest rates came out, US stocks rose rapidly due to the fall of boots.
But when Powell's speech began, the market suddenly realized that the Fed's turn that everyone had been betting on had not yet arrived, and the market turned to a sharp plunge and fell.
02, stock
When the market closed, the Dow Jones Industrial Average, the best performing among the three major indexes, also fell 1.55%, and the Nasdaq Index , which is obviously in the growth style, fell 3.36%.
Many technology giants have fallen one after another, Tesla fell 5.6%, Facebook fell 4.9%, and Amazon fell 4.8% again. Google , Apple , Microsoft all fell nearly 4%.
Although the major bank stocks also fell, the decline was small. JPMorgan , Goldman Sachs, Morgan Stanley, Bank of America , Wells Fargo fell less than 1%. Only Citi fell by 1.4%.
Chinese stocks listed in the United States performed quite well, with both rising and falling, and their overall performance was better than Nasdaq .
03, affecting
From the current market perspective, the biggest hit to the interest rate hike this time was the US stock market, which had a relatively small impact on other markets.
Normally, the Fed rate hike will push the dollar index further up, causing other non-US currencies to continue to fall.
Since the beginning of this year, due to various factors, the yen has fallen by more than 30% against the US dollar due to the influence of various factors. But unexpectedly, the yen strengthened after the Federal Reserve announced a rate hike.
In the current foreign exchange market, the yen exchange rate has seen a rapid rise in a short period of time, from 148 to 147.1. The idea of U.S. financial capital's desire to suppress currencies in other countries by hiking interest rates seems to have failed to achieve.
However, international gold prices have plunged.
After the announcement of the interest rate hike decision, the price of gold fell from the highest $1673 to $1637, down nearly $40.
Gold is considered a safe-haven and anti-inflation tool. The decline in price indicates that these two functions have been greatly weakened.
