Stock and bond prices plummeted in the U.S. on Wednesday, as recent minutes from the Federal Reserve strengthened fears that they could be repatriated in a crisis if the economy continued to deteriorate.
Wall Street’s S&P 500 index fell 1% by noon in New York, and went on for the third day in a row, having already sold 0.5% just before the minute out of April’s Federal Open Market Committee meeting. US Treasury’s 10-year yields, which move differently from its price, rose sharply to 1.68 percent.
Some analysts and analysts say that the market’s actions have only one sentence per minute indicating that if the economy continues to prosper, the US central bank may begin to withdraw from the crisis bought during the crisis to help support the financial markets.
“Many of the participants said that if the economy continues to make rapid progress towards the objectives of the committee, it may be necessary at some point in the next meetings to discuss the process of reform,” he said. minutes He said.
However, some observers have lowered the hopes of making a change in the law.
“It seems that a growing number of people are seeing” significant progress “in the global financial crisis and economic crisis over the past year,” said Bob Miller, America’s chief executive at BlackRock.
“However, it remains to be seen whether this would lead to a similar recognition from the Fed, thereby encouraging a change in policy to be appropriate, yet possible, in our economic environment.”
Fed Chair Jay Powell has it he waited the central bank will remain in place until the US public market cures the epidemic.
“[But] the Fed will not be on the sidelines forever, “says Luca Paolini, chief executive at Pictet Asset Management, before the minutes are released.” The danger is that markets begin to see them behind the barn “and fear the” fears that come too late “.
The drop followed a weak spot in Europe, where the total Stoxx 600 area closed 1.5%, which was one of the biggest indicators on a daily basis this year.
Paul Jackson, Invesco’s chief research officer for economics, said women are also looking for more compelling reasons to follow a market meeting that began in March last year and a major corporate season.
Europe’s Stoxx 600 has risen almost 55% since mid-March 2020 and Wall Street’s S&P 500 has gained more than 80 percent.
“A lot of good news is already on the price, and it’s hard to see where the next resort at another conference is coming from,” Jackson said.
In monetary terms, the dollar rate rose significantly against the basket of peers. Sterling fell 0.5% to $ 1.412 against the dollar following the Fed currency and the euro fell 0.3% to $ 1.219.
The global oil price Brent crude, which briefly hit $ 70 a barrel Tuesday for just the third time, fell more than 3% to $ 66.58 a barrel.
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