"Financial markets are churning on Friday as investors try to figure out what President Donald Trump's new nominee to lead the Federal Reserve will mean for interest rates. The initial reactions were uneasy because of the uncertainty. U.S. stocks fell, with the S&P 500 down 0.8% in midday trading. The Dow Jones Industrial Average was down 507 points, or 1%, as of 1 p.m. ET, and the Nasdaq composite was 1% lower."
"Whoever leads the Fed has a big influence on the economy and markets worldwide by helping to dictate where the U.S. central bank moves interest rates. Such decisions lift or weigh on prices for all kinds of investments, as the Fed tries to keep the U.S. job market humming without letting inflation get out of control. Trump has been pushing for lower interest rates, which usually help goose the economy but can also cause higher inflation."
Financial markets reacted nervously to President Trump's nomination of Kevin Warsh to lead the Federal Reserve, producing sharp moves across equities, currencies, and commodities. U.S. stocks fell midday, with the S&P 500 down 0.8% and the Dow off about 1%. The U.S. dollar climbed after initial swings, while gold plunged after a previous strong run. Whoever leads the Fed influences global markets by guiding interest-rate policy, which affects prices and inflation. Markets fear a loss of Fed independence under political pressure for lower rates, raising uncertainty about future rate decisions.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]