Federal Reserve (Fed) President Jerome Powell warns of risk of new inflation surprises but assures US economy will weather rate hikes
Session of maximum volatility in the main European stock markets, where the declines were finally imposed on a day marked by the appearance of the president of the US Federal Reserve (Fed) before the US Congress.
The Ibex-35 started the session with moderate drops to lose 2% and even put 8,000 points on the line in the worst moments of the session. However, following the upward turn on Wall Street (which had also started the session with losses), the national floor moderated its decline to 1.1% at nearly 8,145 points.
The steel companies and again the energy sector were the worst performers of the selective, with ArcelorMittal collapsing 9.75%, followed by the declines in Repsol (-4.27%), Acerinox (-3.31%), Red Eléctrica (-3 .11%), Iberdrola (-2.90%), Sacyr (-2.56%), Acciona Energía (-2.54%) and Enagás (-2.44%).
At the top of the table led by Rovi (+4.39%), Telefónica (+2.03%) and BBVA (+1.50%), with few more positive values.
Investors’ attention was focused on Jerome Powell’s appearance in Congress, in which the Fed president reaffirmed that his main, almost sole, goal is to contain inflation, without any new negative surprises to that effect in the coming years. years to be ruled out. months.
“We are determined to curb inflation. Price stability is the foundation of the economy,” he explains. While acknowledging “the full scale of the problem” that rate hikes could pose, he stressed that the country’s economy is strong enough to withstand tighter monetary policy without slipping into recession.
European markets will try to absorb the strength of Powell’s message tomorrow, which indicates that the pace of rate hikes will not be reversed in the near term. Analysts believe that despite fears that this strategy could lead to a recession, the clarity of the Fed’s message may be enough to reassure the market as it is clear about the roadmap the monetary institution will take .
The tension of recent days is also being transferred to the commodities market, with oil prices falling sharply, with a barrel of Brent at $111 after falling 3%, while West Texas lost nearly 4% to $106.07.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
