New York Stock Exchange Photo = Reuters] The U.S. Federal Reserve raised interest rates for the first time in three years at an Open Market Committee meeting in March, but the New York Stock Exchange rose sharply. While the rate hike did not exceed market expectations, Fed Chairman Jerome Powell expressed his strong confidence and optimism about the US economy at a press conference. Expectations for a deal between Russia and Ukraine related to the Ukraine crisis were also reflected in the stock market.
At the New York Stock Exchange on the 16th, the Dow Jones Industrial Average closed at 34,063.10, up 518.76 points from the previous day.
The Standard & Poors 500 index rose 95.41 points to 4,357.86, and the Nasdaq index, centered on technology stocks, finished trading at 13,436.55, up 487.93 points from the battlefield.
The Fed raised its target rate range by 25 basis points to 0.25% to 0.5% for the first time since 2018. According to the dot chart containing the members interest rate forecasts, the members expected the median base rate to reach 1.9% this year. This suggests that interest rates are expected to rise once in each of the remaining six meetings.
The Feds interest rate hike seems to reflect its strong will to control inflation as jobs are stable and the recent inflation rate is so severe that it hit the highest level in 40 years.
At a press conference following the end of the FOMC meeting, Fed Chairman Powell said on several occasions that he did not see a particularly high probability of a recession and said the US economy was very strong. He seems to have implied that even if it tightens, it will not dampen economic growth.
The peace negotiations between Russia and Ukraine are also an area the market is paying attention to. Investor sentiment improved as the Russian side said that the neutralization of Ukraine was being discussed in the negotiations and that some provisions were close to an agreement.
Russian Foreign Minister Sergei Lavrov said in an interview with Russian media RBC that the neutrality status, along with security measures, is now being seriously discussed, and that there are very specific phrases that are close to an agreement.
There was also news that the negotiating delegations from both sides were preparing a 15-point peace plan. It is known that the main contents of the peace plan include the reduction of Ukrainian troops and the withdrawal of Russian troops.
International oil prices also continued to stabilize downward. The price of West Texas Intermediate crude fell for the third trading day, closing at around $95 a barrel.