Wall Street is trading with volatility this Wednesday after the mixed sign on Tuesday and after learning about the rate decision of the Federal Reserve (Fed)The organization has chosen to start its monetary easing cycle with a 50 basis point rate cutup to the range between the 4.75%-5.00%. This movement is the First cut in four and a half yearsafter keeping the price of money at a 23-year high since last July. In its statement, the US central bank explained that it has chosen to begin to relax its policy because «it has acquired a Greater confidence that inflation is moving sustainably towards 2%and considers that the risks to achieving its employment and inflation objectives are more or less balanced.» However, he stressed that The economic outlook is uncertainso it will be attentive to the risks that both parts of its double mandate run. At this meeting, the Fed has also presented its macro projections. In this sense, he now hopes that close the course at an average of 4.4%while in the June forecast it pointed to 5.1%. For next year, it now expects them to fall to 3.4%, compared to 4.1% in June, and to 2.9% in 2026 and beyond. The agency has PCE inflation expected for this year revised downwards to 2.3%three tenths below the June forecast. As for the underlying rate, it expects it to close the course at 2.6%, while in June it anticipated 2.8%. In addition, they show a 2024 of lower growth and higher unemployment to what was previously thought.
«PROCESS» OF DOWNLOADS
Following the Fed's decision, the market was eagerly awaiting to hear from the head of the organization, Jerome Powellwho has assured that the central bank has begun a «process» of rate reduction which will continue in the future. Although he has emphasized that the drop in interest rates 50 basis points is not a «default route» and the speed of the cuts It will depend on the data incoming, so they will maintain the focus of «meeting by meeting». «This recalibration of our stance will help maintain the strength of the economy and the labor marketand will continue to allow for further progress in inflation, as we begin the process of moving towards a more neutral stance,» he stressed.
TECHNICAL ANALYSIS
He Dow Jones has given in the last sessions a new show of strength. «The American index has managed to close above the all-time highs it reached at the end of last August, at 41,585 points. Its technical aspect could not be better, as it is moving in a free upward trend, without any resistance in its path. In the short term, we are likely to see an extension of the rises to the level of 43,000 points.«says César Nuez, technical analyst at BitcoinDynamic.
Its technical aspect is unbeatable and «we will not see even the slightest sign of weakness as long as it remains trading above 40,000 points, the minimum for this month of September. key support It is much lower down, specifically in the 38,499 pointslevels where the average of 200 sessions«, he adds.
COMPANIES AND OTHER MARKETS
On the business level, Google is the protagonist thanks to the fact that Court of Justice of the European Union (CJEU) ha 1.49 billion euro fine cancelled imposed by the European Commission on the company in 2016 for abuse of dominant position through its AdSense advertising platform. The technology company is trading flat on Wall Street. In other markets, oil is trading West Texas down 0.87% ($70.57) and the Brent yields 0.60% ($73.27). For its part, the euro It appreciates 0.27% ($1.1145), and the ounce of gold gains 0.43% ($2,603). In addition, the 10-year US bond yield is revalued at 3.689% and the bitcoin rises 0.75% ($60,635).