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Wall Street Closes Lower, Fed Strikes Hawkish Tone

Wall Street Closes Lower, Fed Strikes Hawkish Tone

Yesterday evening, the Federal Reserve raised interest rates by 75 basis point as expected. But, as we noted in yesterday’s news, it was Fed Chair Jerome Powell’s comments after the announcement that were of particular significance.

Many traders and investors had speculated that the Fed would begin to slow the pace of future rate hikes, and were looking for any signals in Powell’s speech that this was the case. They would have been disappointed, unfortunately.

Despite the initial announcement leaving the door open for a slowdown in future rate hikes, Powell seemingly poured cold water on the prospect shortly after, stating that it was “very premature” to consider pausing and that rates were likely to go higher than had previously been expected.

These comments had a predictable effect. The US dollar strengthened, which had an adverse impact on many commodities. Meanwhile, Wall Street closed the day sharply lower, with the Dow Jones, S&P 500 and Nasdaq sliding 1.55%, 2.50% and 3.36% respectively.

The big tech companies that are affected by the crisis were Tesla, Amazon, Netflix, and…

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