Wall Street falls after Jerome Powell’s speech

04 mars 2021

22:23

The American markets fell heavily on Thursday, weighed down by the Nasdaq, after the intervention of the boss of the American Central Bank (Fed) Jerome Powell and the rise in bond rates.

The US stock market closed in the red on Thursday after the intervention of Federal Reserve boss Jerome Powell, who reiterated the Fed’s commitment to a very accommodating monetary policy. The Dow lost 1.11% to 30,924.14 points. The Nasdaq yielded 2.11% to 12,723.47 points. The S&P 500 fell 1.34% to 3,768.47 points. The yield on 10-year Treasury bills also rose sharply, moving at the close of Wall Street to around 1.54%.

Powell estimated that the US labor market will not return to full employment this year, one of the conditions the Fed has given itself to raise interest rates. He brushed aside fears of too high inflation to come, indicating that the rise in prices should remain provisional. Markets have been nervous for several weeks about a return of inflation as strong economic growth looms in the United States in the coming months with vaccinations and the stimulus plan. They seemed to be hoping for a change in tone from the Fed, including a sign that it might change the profile of its asset purchases.

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