After the warnings of the head of the US Federal Reserve (FED), Jerome Powell, of a high probability of accelerating the rises in interest rates if inflationary pressure continues, Wall Street closed a day with strong falls in several of its shares.
He S&P 500 down 1.5%, the Industrial Average Dow Jones fell 1.7%, while the composite Nasdaq it was down 1.2 percent.
Inflation reports last month reported an upward trend, which has exceeded the Fed’s projections for an interest rate ceiling.
“Higher rates can curb inflation by slowing down the economy, but they also hurt stock prices and other investments. They also increase the risk of recession later on,” noted several business newspapers.
