Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., June 30, 2022. REUTERS/Brendan McDermid
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- FOMC minutes are released at 2:00 PM EDT
- Markets rose for minutes after the publication before falling
- Indexes down: Dow 0.29%, S&P 0.15%, Nasdaq 0.18%
NEW YORK, July 6 (Reuters) – U.S. stock indexes edged lower on Wednesday after rising briefly after the release of minutes from the Federal Reserve’s latest meeting, which investors were expecting for clues about the central bank’s interest rate policy and fight against inflation.
A worsening inflation situation and concerns about a loss of faith in the Federal Reserve’s power to make it better prompted U.S. central bank officials to rally around an outsized interest rate hike and a firm restatement of its intent to bring prices under control, minutes from June 14 – 15 political meeting showed. Read more
The 0.75 percentage point increase that came out of the meeting was the first of that size since 1994. According to the minutes, participants judged that an increase of 50 or 75 basis points would probably be appropriate at the policy meeting later this month.
After a brutal selloff in global equity markets in the first half of the year, nervous investors are keeping a close eye on central bank action as they try to gauge the impact of aggressive rate hikes on global growth.
By 2:17 p.m. EDT, the Dow Jones Industrial Average (.DJI) was down 90.03 points, or 0.29%, at 30,877.79, the S&P 500 (.SPX) was down 5.68 points, or 0.15%, to 3,825.71 and the Nasdaq Composite (.IXIC) fell 20.35 points, or 0.18%, to 11,301.88.
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Reporting by Amruta Khandekar and Bansari Mayur Kamdar in Bengaluru and David French in New York Editing by Shunak Dasgupta and Matthew Lewis
Our standards: The Thomson Reuters Trust Principles.
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