The Dow has fallen more than 100 points, with Wall Street continuing its decline from yesterday’s heavy plunge.
At 8:49 p.m. Thai time, the Dow Jones Industrial Average stood at 30,063.98, minus 119.80, or 0.40%.
The Dow Jones Industrial Average fell more than 500 points yesterday. The Federal Reserve (Fed) raised interest rates by 0.75% as the market expected. But the Fed continued to signal further rate hikes in 2023, disappointing investors who were expecting a rate cut next year.
In addition, investors are worried that the Fed’s rate hike will affect the growth of the US economy. The Fed lowered its forecast for gross domestic product (GDP) this year to 0.2%.
The Fed raised its short-term interest rate by 0.75% to 3.00-3.25 percent at its meeting yesterday. It also signaled that the Fed will continue to raise interest rates until it hits 4.6% in 2023.
In its policy interest rate forecast (Dot Plot), Fed officials expect no rate cuts until 2024. This caused the long-term interest rate to drop to 2.9%.
Fed officials forecast interest rates to hit 4.4 percent at the end of the year and 4.6 percent at the end of 2023, before slowing to 3.9 percent in 2024 and flat at 3.9 percent in 2025. The long-term interest rate is 2.5%.
Investors expect The Fed will continue to raise interest rates at the remaining two meetings this year. After removing the Dot Plot signal and a statement from Fed Chairman Jerome Powell at yesterday’s meeting
Markets expect the Fed to raise interest rates by 0.75% at its monetary policy meeting in November. and increased by 0.50% in December
The latest CME Group’s FedWatch Tool indicates that investors weighed 68.1% that the Fed would raise interest rates 0.75% to 3.75-4.00% at its Nov. 1-2 meeting and weighed 66.7% that the Fed would. Raised interest rates by 0.50% to 4.25-4.50% at the meeting on 13-14 Dec.
If the Fed raises such interest rates as expected. This will result in the Fed raising interest rates by 0.75% four times in a row in June, July, September and November meetings. Meanwhile, the Fed’s policy rate will hit 4.25-4.50% by the end of the year. And it will keep the interest rate above 2.50%, the level the Fed considers neutral. without being too relaxed or too strict
