Wall Street is retreating after the Federal Reserve Chairman’s statements about the future of the US economy

Traders work on the floor of the New York Stock Exchange (Reuters/Brendan McDermid/File)

Wall Street was dyed red on Friday, and its main index, Dow Jones Industrials, fell to 1.92% by 16:30 GMT.after the Chairman of the Federal Reserve (Fed), Jerome PowellHe said the US central bank should continue to raise interest rates and keep them higher until inflation is brought under control.

at that time, The Dow was down more than 600 points at Thursday’s close, down to 32,653.60.while the selectivity Standard & Poor’s 500 lost 2.3% or 95.38 units up to 4,103.74 points. On the other hand, the composite market index Nasdaqwhich brings together major technology companies, Decreased 2.83% or 357.20 integersup to 12,282.06 units.

Investors have been waiting all week for Powell’s comments on how the central bank will achieve its goal of lowering inflation while minimizing the risks of a deep recession.

Although the Central Bank’s measures to reduce the rate of investment, spending and employment,They will reduce inflation, and they will also bring some pain to families and businessesPowell said in his speech at the symposium in Jackson Hole, Wyoming.

Federal Reserve Chairman Jerome Powell (Reuters / Jonathan Crosby)
Federal Reserve Chairman Jerome Powell (Reuters / Jonathan Crosby)

These are the unfortunate costs of lowering inflation.. But a failure to restore price stability would mean much greater pain.”

Federal Reserve officials raised interest rates by 0.75 percentage points in each of their last two meetings.most recently in July, in a range of 2.25% to 2.5%. At its meeting in late September, the Fed is expected to raise interest rates morealthough it is not known whether it will do so by 0.5 percentage point or by 0.75 percentage point.

This Saturday he will speak at the annual meeting Isabella SchnabelMember of the European Central Bank Governing Council.

The color red spread across all sectors and the decline was seen in communications (-2.83%), technology (-2.47%) and non-essential goods (-2.36%).

Among the 30 companies listed on Dow Jones, losses also prevailed, with the largest declines being Nike (-3.05%) and Salesforce (-3.02%).

(With information from EFE)

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