Traffic jam:   0

After Fed minutes: market can expect more losses

7 April 2022
1 min.
After Fed minutes: market can expect more losses

Fed minutes

US indices fell on Wed. after the release of the minutes of the Federal Reserve's March meetings this year, which suggest more monetary policy tightening than the market is prepared for. You can read about yesterday's trading on our GlobalNY.biz website.

William Dudley, former president of the New York Fed, said in an interview with Bloomberg that he believes the Federal Reserve Board (Fed) will have to deal many more blows to the stock market to get inflation under control.

Minutes showed that the Fed intends to start cutting its balance sheet by $9 trillion in the coming months, eventually reducing its holdings in Treasuries and mortgage-backed securities by $95 billion a month. That's a faster reduction than when the central bank undertook quantitative tightening from 2017 to 2019. In addition, there are prospects of an aggressive rate hike of 0.5% in May.

Earlier this week Deutsche Bank became the first major Wall Street bank to point to the risk of a US recession, predicting a recession by the summer of 2023 and a "temporary" 20% fall in equities.

A recent report showed that analysts at the bank expect the Fed (Federal Reserve Board) to raise rates by 50 basis points at its next three meetings, "with balance sheet tightening adding at least another 75 basis points to rate hikes", the recent report said.

Inflation may remain a problem due to both rising prices in the car, food and energy markets. Oil prices rose again from a 3-week low amid lingering supply concerns.

Also, stocks have lost ground in 2022, but losses are still relatively small: since the start of the year the S&P 500 Index is down less than 6%; the Dow Jones is down 5%; the Nasdaq Composite Index is down more than 11%.

Persons1 and Companies5 in the news

Former President of Federal Reserve Bank of New York
1 place
1 place
Dow Jones
2 place
Bloomberg L.P.
5 place
Source foto:


Rating companies
39 Mention
Dow Jones
35 Mention
23 Mention
Bloomberg L.P.
21 Mention
19 Mention
JP Morgan Chase
18 Mention
18 Mention
15 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year