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| New York Stock Exchange while waiting for Powell.|
Photo: AFP / VNA / CVN
Its flag index, Dow Jones Industrial Average, reached 2.50% and closed 25,366.43 points and occasionally recorded its best session since March. The Nasdaq, with a strong technological color, reached 2.95% and finished at 7,291.59 points. The broad S & P 500 reached 2.30% to reach 2 743.78 points. Before the Economic Club in New York, the Fed chief simply "says magic words"The market was waiting," said Gregori Volokhine of Meeschaert Financial Services.
Investors were genuinely concerned when Jerome Powell estimated at the beginning of October that the Fed is "still very far away" from the "neutral" rate it is pursuing, which encourages growth without rising prices. These notes largely contributed to the start of a period of strong turbulence on Wall Street. He believes on Wednesday 28th November that rates were "just below" the neutral level, "he pointed out that we were approaching the end of the cycle of rate growth"said Peter Cardillo of Spartan Capital Securities.In December, we can expect a new growth, but maybe one or two next year "where market watchers predict up to two to three increases, he said.
Enough to appease investors on Wall Street, who are afraid for too fast a rise in interest rates for several months. A sudden tightening of the US monetary policy would, in their view, slow down growth by providing particularly costly loans to individuals and businesses. "The fact that Mr. Powell reiterated that monetary policy would be decided on the basis of economic data also assured investors," according to Cardilla: this suggests that the institution will adjust its decision if the economy slows down.
But Mr Powell's commentary is not on Wednesday, 28 November "not as cautious as the market thinks," said Ian Shepherdson, chief economist at Pantheon Macroeconomics. The Fed's boss actually felt the rates were just below "range of estimates " where they can be considered neutral, he said.
If we believe that this range is currently between 2.5% and 3.5%, "before coming to the center "he said. On the bond market, the 10-year US debt ratio stabilized at 3:15% at 21:15 GMT, compared with 3.057% on Tuesday at the end, and 30years rose to 3.345% versus 3.319% on the previous day.
AFP / VNA / CVN