The Fed's strong response to high inflation, which exacerbates market fluctuations

Xinhua News Agency, New York, August 26 (International Observation) Fed's strong response to high inflation, exacerbating market fluctuations

Xinhua News Agency reporter Liu Yan

Affected by Powell, chairman of the Federal Reserve Committee on the Fed's strong response to high inflation, the US capital market fluctuated violently. The three major stock indexes in the New York stock market fell more than 3%on the 26th. Analysts said that Powell's relevant statement dispelled the market's expectations of the Fed's slow interest rate hike rhythm. It is expected that market fluctuations in the short term will continue.

As of the close of the day, the Dow Jones Industrial average index fell 1008.38 points compared with the previous trading day, closing at 32283.40 points, a decline of 3.03%; the 500 stock index of the Standard Pur had fallen by 141.46 points, closing at 4057.66 points, a drop of 3.37%; Nasda; Nasda; Nasda; Nasda; Nasda; The Ke comprehensive index fell 497.56 points to close at 12141.71 points, a decrease of 3.94%.

Powell said in a public event on the 26th that the Fed will firmly fight against high inflation, release the Federal Reserve's eagle signal that will continue to raise interest rates at the September interest rate interest conference, and says that it will bring "pain" to the economy. He also mentioned that the interest rate hike still depends on economic data.

Analysts said that the interest rate hike in the Fed in September may be related to the upcoming August non -agricultural employment data and inflation data.

Powell also said that the level of inflation in the United States is at a historical high, and it is stated that the Fed will effectively use policy tools to fight inflation. The monetary policy and measures adopted to reduce inflation may lead to a decline in economic growth and weak employment market.

Analysts said that the current inflation rate in the United States is much higher than the Fed's 2%goal. Even if it is slightly declined now, it is too early to turn from monetary policy.

The latest data shows that the consumer price index (CPI) in the United States in July was flat, up 8.5%year -on -year, and the year -on -year increase remained at a high level of about 40 years.

Jack Jack, a senior investment strategist at the Bank of New York Mellon Investment Management Company, said that Powell's latest statement shows that the Fed will not adjust the direction of monetary policy recently. Michael Arine, chief investment strategist at Daofu Global Investment Consultant Company, also believes that investors want the Federal Reserve's idea of ​​"naive".

According to the UBS analysis, the recent relatively positive employment data in the United States is unlikely to continue, residents' savings and expenditures have decreased, and market prospects are still great uncertainty. In view of the pressure of high inflation, the Federal Reserve cannot quickly consider the monetary policy "turning pigeons".

Cleve Hodch, chief investment officer of the US Grand Stone Wealth Management Company, said that the Fed will continue to maintain a radical monetary policy, which may lead to more fluctuations in the stock market.

The Chicago Options Exchange's fluctuation index (also known as the "Panic Index"), which measures the panic and market risks, has risen from 20 below August to more than 25, and the increase of 17.36%on the 26th.

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