Investing.com-US stocks failed to maintain modest rise on Wednesday after Federal Reserve Chair Jerome Powell finished the first day of testimony at Capitol Hill as part of a semi-annual report on the economy. It has fallen.
At 4:12 pm ET, was down 47 points or 0.2%, but was down 0.1% and down 0.1%.
Powell will visit the Senate Banking Commission this morning and will visit the House of Representatives tomorrow. He assured lawmakers that the Fed is “strongly committed” to curbing inflation and has sufficient economic power to withstand rising interest rates, which are used as a tool to reach that goal. Told.
Powell also said that the pace of future rate hikes will depend on what the data tells the central bank about inflation, whether inflation persists or cools. He acknowledged that recession is not a goal, but it could be a result. Just a week ago, three-quarters percentage points, the biggest move in decades, Powell said at the July meeting, an additional 50-75 basis points increase is expected.
Banks are already raising expectations for a recession. Yesterday, Goldman set odds for next year at 30%, but Citigroup now states that there is a 50% chance of a global recession as consumers regain their spending.
President Joe Biden is trying to play his part in mitigating inflation and is calling on Congress to suspend federal taxes on gasoline and diesel fuel for three months.
Falling oil prices have crushed energy stocks. Crude oil fell 3.4% to $ 110.76, down nearly 4% to $ 105 a barrel. It was flat at $ 1,840 an ounce.
The stock price of ConocoPhillips (NYSE :) has fallen by more than 6%, Marathon oil The stock price of Corporation (NYSE :) fell 7%. Occidental Petroleum Corporation (NYSE :) fell 3.6%.
S & P stalls after Federal Reserve Powell talks about inflation by Investing.com
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