Stock Exchanges | Wall Street closed lower after the Fed’s key interest rate decision

Stateside at the close of the stock market, all three of Wall Street’s main indexes were in the red after the US central bank, the Fed, cut its key interest rate by 0.5 percentage points.

The technology-focused Nasdaq, the broader S&P 500 and the industrial-focused Dow Jones all closed down 0.3 percent.

Before the interest rate decision, the market had predicted both a 0.25 percentage point and a 0.5 percentage point decrease, but the Fed ended up choosing the more radical of the two options.

The corona reduction is the first since the spring of 2020. In the fight to curb inflation, the Fed raised the key interest rate to an exceptionally high level not seen in twenty years. The Fed said that the decision to cut interest rates was almost unanimous and was made by an 11-1 vote in the Open Market Committee, which decides on interest rates. It was expected to divide the leadership of the central bank.

of the United States presidential candidates, Republican Donald Trump and the Democrats Terrible Harris took completely opposite views on the Fed’s decision.

“The economy is in a really weak mess or they are playing politics, either. But it was a big operation,” ex-president Trump commented on the decision in his televised comments.

Harris, on the other hand, praised the central bank’s decision and said he was committed to fighting inflation.

“This is welcome news for Americans who have been suffering from high prices. I will continue to work to keep prices down,” Vice President Harris said in a statement.