Its hawkish position combining with an official report from the economy and open investigations of Trump’s possible justice obstruction led to the low indexes today.
While the EU has its own problems, with Brexit negotiations that will start in a week and ECB position, Asian stocks followed disturbing news from the USA and lost 0.7 percent of its income today.
Yesterday Federal Reserve has officially announced its decision to raise the interest rates as it was predicted. Also, it has announced its hawkish plan to save the economy which includes the decrease of bonds on 4.2 trillion dollars.
Janet Yellen, the head of Federal Reserve in her latest interview with the press said that the bank is going to start this process as soon as it is possible. Other board members of Fed showed their intention to make more interest rate hikes until the end of the year.
Wall Street main banks expect to see Fed’s reduce of reinvestments in bonds at the beginning of September. They had to change the previous forecast according to which they expected this move not earlier than in this year’s December.
Meanwhile, the latest release of economic data, which were lower than expected, over-shadowed Fed’s confidence in a constant growth and hawkish decision.
According to the senior economist Tomoaki Shishido, Fed made an unexpected move on Wednesday. It was not predicted by analysts and now they are concerned about this plan and its consequences for the USA economy. Fed continues its plan that was created in March despite changes in the economy.