US stocks closed on a fall this Friday (17th), as investors assess the possible impact of inflation and the policies of the largest central banks in the world.
The Fed (Federal Reserve, BC of the USA), for example, declared on Wednesday (15) the end of bond purchases in March and signaled three 0.25 percentage point hikes in interest rates until the end of 2022.
Thus, the Dow Jones fell 1.48%, to 35,366 points, the S&P 500 retreated 1.03%, to 4,620 points, while the Nasdaq worked down 0.07%, to 15,169 points.
According to The Wall Street Journal, investors have broadly welcomed the Federal Reserve’s initiative to accelerate the phasing out of stimulus measures. But concerns turned to the indirect impact on economic growth.
On Thursday, the Bank of England raised interest rates, taking investors and analysts by surprise. The European Central Bank has said it will phase out an emergency bond-buying program while stepping up other stimulus measures.
Japan’s Central Bank on Friday reduced emergency financing adopted in the pandemic, but maintained an ultra-flexible monetary policy and extended financial easing to small businesses, cementing expectations that it will remain among the most stimulating central banks for the foreseeable future.
Bank of Japan (BoJ) President Haruhiko Kuroda said borrowing costs will remain low in the country even as other central banks raise interest rates, and emphasized that the reversal of emergency financing will not it was by no means a prelude to a complete withdrawal of monetary stimulus.
Reference: CNN Brasil
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