Facebook Twitter Instagram
    Coinrevolution
    • Cryptocurrency
      • Crypto Exchanges
        • Binance Review
        • Bitstamp Review
        • Bitvavo Review
        • BTC Markets Review
        • Blockchain.com Review
        • CoinJar Review
        • CoinMetro Review
        • Gemini Review
        • Kraken Review
        • Newton Review
        • Liquid Review
        • Wealthsimple Review
      • Price Prediction
        • Akita Inu Price Prediction
        • ANKR Price Prediction
        • Avalanche price prediction
        • BizzCoin Price Prediction
        • Carando Price Prediction
        • Cartesi Price Prediction
        • Dogecoin price prediction
        • Dogelon Mars Price Prediction
        • Enjin (ENJ) Price Prediction
        • Ethereum Price Prediction
        • Gala Price Prediction
        • GRT Price prediction
        • Harmony ONE Price Prediction
        • IoTex Price prediction
        • Loopring Price Prediction
        • NuCypher Price Prediction
        • Polkadot Price Prediction
        • Ren Price Prediction
        • SafeCoin Price Prediction
        • Saitama V2 Price Prediction
        • Shiba Inu Price prediction
        • Siacoin Price Prediction
        • Stellar (XLM) Price Prediction
        • SushiSwap Price Prediction
        • Vechain Price Prediction
        • Xrp price prediction
      • Buy Cryptocurrency UK
        • Best Crypto Exchanges UK
        • Buy Bitcoin UK
          • Best Bitcoin Wallet UK
          • Buy Bitcoin With Credit Card UK
        • Buy DigiByte Coin UK
        • Buy Dogecoin UK
        • Buy Ethereum UK
        • Buy IOTA UK
        • Buy Monero UK
        • Buy Siacoin (SC) UK
        • Buy Stellar Lumens (XLM) UK
        • Buy VeChain (VET) UK
        • Buy XRP UK
      • Buy Cryptocurrency Australia
        • Buy Bitcoin Australia
        • Cryptocurrency Exchanges Australia
        • Best Crypto Wallets Australia
      • Buy Cryptocurrency Canada
        • Buy Bitcoin Canada
        • Crypto Exchanges Canada
        • Crypto Wallets Canada
        • Buy Ripple Canada
      • Buy Cryptocurrency Ireland
        • Buy Bitcoin Ireland
        • Crypto Exchanges Ireland
        • Crypto Wallets Ireland
      • Buy Cryptocurrency South Africa
        • Bitcoin Exchanges South Africa
        • Buy Stocks Ireland
        • Buy Ethereum South Africa
        • Buy Ripple (Xrp) South Africa
      • Crypto Exchanges New Zealand
      • Buy Cryptocurrency UAE
        • Crypto Exchanges UAE
        • Buy Bitcoin UAE
      • Buy Cryptocurrency Singapore
        • Buy Bitcoin Singapore
      • Buy Cryptocurrency Thailand
        • Crypto Exchanges Thailand
        • Buy Bitcoin Thailand
      • Buy Cryptocurrency Qatar
        • Crypto Exchanges Qatar
        • Buy Bitcoin Qatar
      • Buy Cryptocurrency Philippines
        • Cryptocurrency Exchanges Philippines
        • Bitcoin Wallet Philippines
      • Buy Cryptocurrency Saudi Arabia
        • Buy Bitcoin Saudi Arabia
    • investing
      • Best investment platforms UK
      • Best Investment Apps UK
      • Invest In Cryptocurrency Australia
      • Invest In Gold Australia
      • Invest In Silver Australia
      • Invest In Crypto New Zealand
      • Invest and Buy Shares South Africa
      • Invest In Bitcoin Philippines
      • Loans
        • Cash Loans Online
        • Cash Loans Wired in 1 Hour
        • Emergency Loans for Bad Credit
        • Online Payday Loan Canada
        • Payday Loans Ireland
    • Trading
      • Stock Trading Apps Ireland
      • Trading Apps South Africa
      • Trading Platforms South Africa
      • Forex
        • Free Forex Signals UK
        • Forex Trading For Beginners UK
        • Forex Trading Platforms UK
        • Forex Brokers UAE
        • Forex Trading Saudi Arabia
    • Brokers
      • Brokers UK
        • MetaTrader 4 Brokers UK
        • Crypto Brokers UK
        • Stock Brokers UK
      • Stock Brokers Ireland
      • Brokers Compare
        • Chime VS Cash App
        • Betterment vs. TD Ameritrade
        • Questrade vs. Wealthsimple
        • Tastyworks vs Robinhood
    • Trading Software
      • Bitcoin Software A-L
        • Bitcoin Billionaire
        • Bitcoin Circuit
        • Bitcoin Code
        • Bitcoin Compass
        • Bitcoin Equalizer
        • Bitcoin Era
        • Bitcoin Evolution
        • Bitcoin Fast Profit
        • BITCOIN GEMINI
        • Bitcoin Loophole
      • Bitcoin Software M-Z
        • Bitcoin Millionaire
        • Bitcoin Prime
        • Bitcoin Profit
        • BITCOIN SUPERSTAR
        • Bitcoin Trader
        • Bitcoin Up
        • Bitqt
      • Crypto Engine
      • Crypto Genius
      • CryptoSoft
      • Ethereum Code
      • Immediate Edge
      • Oil Profit
      • The News Spy
      • Yuanpay group
      • 1K Daily Profit
    • Contact Us
    Facebook Twitter Instagram
    Coinrevolution
    Home » Stock Market Still Down After Fed’s Tightening Policy
    News

    Stock Market Still Down After Fed’s Tightening Policy

    Samantha MitchellBy Samantha MitchellApril 8, 2022Updated:June 12, 2022No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Investors are still digesting the Fed’s proposal to tighten monetary policy, sending stocks down for the third day. The central bank said Wednesday that it plans to slowly shrink its balance sheet later this year, and signaled that it could raise interest rates again as early as September.

    The proposal sparked a sell-off in stocks, with the Dow Jones industrial average dropping more than 140 points on Thursday. The S&P 500 climbed down to 0.1%, and the Nasdaq composite also fell 0.1%.

    Some investors are concerned that the Fed’s plan could lead to higher interest rates and slower economic growth.

    On Thursday, utilities, consumer staples, and healthcare firms modestly climbed as investors sought safe-haven stocks like Walmart, Coca-Cola, and Procter & Gamble.

    The market is trying to come to grips with the Fed’s message; it’s a change in policy and has consequences.

    The Fed’s actions came following the release on Wednesday of minutes from its March meeting, which revealed that policymakers expected to cut their trillions in bond holdings by roughly $95 billion. Meanwhile, authorities have hinted that one or more 50-basis-point interest rate rises may be necessary to combat inflation.

    The released minutes were a warning shot to the markets that the Fed is getting ready to reduce its balance sheet and start raising interest rates to fight inflation.

    Governor Lael Brainard said on Tuesday that lowering prices will need a combination of gradual increases and vigorous balance sheet reduction. The Fed is expected to raise rates by a total of 250 basis points this year, according to the markets. “All participants underlined their strong commitment and resolve to take the actions necessary to restore price stability,” the minutes read.

    In the bond market, the suffering has been more profound. Treasury rates have increased, although from historically low levels, as they move in the opposite direction of prices. As a result, the bond market’s first-quarter losses were the worst in a quarter-century.

    On Thursday, the 10-year Treasury note yield hit a six-week high of 2.627%, while the 30-year bond yield touched 3.05%.

    Investors are also worried about how the Fed’s move will affect foreign economies and markets. However, this is needed to get inflation under control and keep the economy growing.

    The Fed’s proposal to tighten monetary policy comes as the central bank tries to get ahead of rising inflation. The move also underscores the Fed’s confidence in the economy and its plan to reduce its stimulus.

    But some investors are concerned that the Fed’s plans could lead to a sell-off in stocks and higher interest rates. Higher interest rates could make it more expensive for companies and consumers to borrow money and cause a sell-off in stocks. Furthermore, the Fed’s plans could also lead to a stronger dollar, hurting U.S. exports. 

    While the Fed signaled that it could raise interest rates again in September, it also said it would be data-dependent and could change its plans depending on the economy.

    Furthermore, inflation is scorching, but so is the money that’s burning a hole in people’s pockets – leading to this move from the Feds. 

    Click to rate this post!
    [Total: 0 Average: 0]
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Samantha Mitchell
    • Facebook
    • Pinterest
    • Instagram
    • LinkedIn

    Sam Mitchell is a Freelance Writer & Fitness Instructor from South Africa, living in Australia. She comes to the team with extensive writing and Social Media experience, covering a wide variety of genres from blog posts, book reviews, Whitepapers, blogs and guides to news pieces...and more. Sam has been Freelancing for over 17 years, working with many different clients. You can get in touch with Sam at www.stmwritingsolutions.com

    Related Posts

    The EU Parliament Passes Bill for Monitoring Crypto Transfers

    June 30, 2022

    US SEC Is Set To Classify Bitcoin As A Commodity

    June 29, 2022

    It’s A Buyers’ Market As The Bears Persist

    June 28, 2022
    Guide
    • Cryptocurrency
    • Forex
    • Trading
    • Investing
    • Brokers
    • Trading Software

    Trading is very risky. Consult a financial advisor. Coinrevolution does not guarantee the accuracy of the presented data and is not responsible for any trading decisions. Please read our full disclaimer

    Facebook Twitter Instagram Pinterest
    • Risk Disclaimer
    • About Us
    • Privacy Policy
    • Contact Us
    © 2022 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
    Cookie SettingsAccept All
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
    CookieDurationDescription
    cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
    cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
    cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
    cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
    cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
    viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
    Functional
    Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
    Performance
    Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
    Analytics
    Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
    Advertisement
    Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
    Others
    Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
    SAVE & ACCEPT
    Go to mobile version