US markets fell more than 3% amid the statement of the head of the Fed
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American indices fell within 3-3.9% on Friday, August 26, showing the worst daily dynamics in several months. The decrease occurred after the words of the head of the US Federal Reserve System (FRS) Jerome Powell about his intention to continue to pursue a tight monetary policy to fight inflation.
The Dow Jones fell 1,008.38 points (3.03%) to 32,283.38 points. According to AFP, this is the worst single-day loss since mid-May. The S&P 500 was down 141.46 points or 3.37% to hit 4057.66. This is the worst dynamics in two months. Nasdaq lost the most – 3.94% or 497.56 points, it fell to 12,141.71 points.
Mr. Powell on August 26 said that it is necessary to continue to raise the base interest rate in order to control inflation. In his opinion, this will lead to a slowdown in economic growth and a weakening of the labor market, but will help curb rising prices. “This is the sad cost of reducing inflation,” he said.
On the consequences of high inflation in the United States – in the material “Kommersant” “Setting off automatically”.
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