Highlights

  • US stocks fell on Thursday in a sharp reversal
  • Dow Jones fell 600 points from day's high

Latest news

Norway gay bar shooting: 2 dead, over a dozen wounded

Norway gay bar shooting: 2 dead, over a dozen wounded

Wayne Rooney steps down as League One's Derby County manager

Wayne Rooney steps down as League One's Derby County manager

'Laal Singh Chaddha's new song: ‘Phir Na Aisi Raat Aayegi’ is the ‘song of the decade’, says Kareena

'Laal Singh Chaddha's new song: ‘Phir Na Aisi Raat Aayegi’ is the ‘song of the decade’, says Kareena

WATCH| US President Joe Biden explains how abortion rights can be restored

WATCH| US President Joe Biden explains how abortion rights can be restored

Tears of rage vs joy as US Supreme Court strikes down abortion laws

Tears of rage vs joy as US Supreme Court strikes down abortion laws

Fed fears spark sell-off, Powell braces for 50 bps hike, and more

Wall Street investors expect the Fed to raise its key rate by a half-point at its next three meetings

The Federal Reserve must move faster than it has in the past to rein in high inflation, Chair Jerome Powell said Thursday, signaling that sharp interest rate increases are likely in the coming months, beginning at the Fed's next policy meeting in May.

In a panel discussion held by the International Monetary Fund during its spring meetings, Powell also suggested that “there's something in the idea of front-loading" aggressive rate hikes as the Fed grapples with inflation that has reached a four-decade high.

Also read/watch | Sensex, Nifty weak on Fed rate hike fears

“So that does point in the direction of (a half-point rate increase) being on the table" for the Fed's policy meeting May 3-4, Powell said. Typically in the past, the Fed has raised its benchmark short-term rate by more modest quarter-point increments. When the Fed raises its rate, it often leads to higher borrowing costs for people and businesses, including those seeking to borrow to buy homes, cars and other costly goods.

Wall Street investors already expect the Fed to raise its key rate by a half-point at its next three meetings, including those that will occur in June and July. Powell's comments Thursday underscored those expectations.

Also read/watch | Adani Ports shares buzzing as it acquires Ocean Sparkle

That would be the fastest tightening since 1994 when the Fed raised its rate by 1.25 percentage points over the course of three meetings.

Up Next

Fed fears spark sell-off, Powell braces for 50 bps hike, and more

Fed fears spark sell-off, Powell braces for 50 bps hike, and more

Top 5 'fat-finger' trades that rocked global markets

Top 5 'fat-finger' trades that rocked global markets

Explained: What is a fat finger trade and how it can make you lose crores!

Explained: What is a fat finger trade and how it can make you lose crores!

Market moves & cues: Trading day ahead

Market moves & cues: Trading day ahead

Explained: Falling global markets and what is the new 'GST' fear

Explained: Falling global markets and what is the new 'GST' fear

US markets collapse, Dow sinks 700 points to year low

US markets collapse, Dow sinks 700 points to year low

More videos

Watch Fed Chief Powell get quizzed! Can rate hikes really reduce inflation?

Watch Fed Chief Powell get quizzed! Can rate hikes really reduce inflation?

What the Fed! US Markets rebound despite massive rate hike weak growth outlook

What the Fed! US Markets rebound despite massive rate hike weak growth outlook

Fed decision day: Here is what to expect from the Federal Reserve Chair Powell

Fed decision day: Here is what to expect from the Federal Reserve Chair Powell

Market carnage: US markets in a free fall as Fed begins 2-day meet

Market carnage: US markets in a free fall as Fed begins 2-day meet

Currency collapse: Rupee sinks to record low, Yen slumps to 28-year low

Currency collapse: Rupee sinks to record low, Yen slumps to 28-year low

Explained: Recession risks and why should we care about an inverted yield curve

Explained: Recession risks and why should we care about an inverted yield curve

Markets crash: Prices, Putin and Pandemic - the 3 pronged pain for stocks

Markets crash: Prices, Putin and Pandemic - the 3 pronged pain for stocks

Monday meltdown for markets

Monday meltdown for markets

Federal Reserve meet this week sparks global sell-off

Federal Reserve meet this week sparks global sell-off

RBI Monetary Policy: Repo rate hike again, shocks with 50 bps hike

RBI Monetary Policy: Repo rate hike again, shocks with 50 bps hike

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.