"As Expected, Powell" NY Stock Market Rises... Early Rate Hike Concerns Ease Despite Tapering Implementation

[Asia Economy New York=Correspondent Baek Jong-min] Although the U.S. Federal Reserve (Fed) announced a tapering of asset purchases, the New York stock market turned to an upward trend as it assessed inflation to be temporary.

[Image source=Yonhap News]

As of 2:55 p.m. local time on the 3rd, the Dow Jones Industrial Average was up 0.2%, the S&P 500 was up 0.48%, and the Nasdaq was up 0.79%.

The major indices of the New York stock market turned to an upward trend after the tapering announcement at 2 p.m., and the gains expanded after Fed Chair Jerome Powell's press conference began at 2:30 p.m.

On this day, the Fed announced that it would reduce asset purchases by $15 billion per month starting at the end of this month and would end them completely by July next year.

CNBC explained that the market shock was not significant as the Fed maintained its stance that inflation is temporary and indicated it would not rush to raise interest rates.

Michael Aaron, an analyst at State Street Global Advisors, analyzed, "The Fed's maintenance of the view that inflation is temporary suggests that it will keep interest rates at zero for a longer period than many expect."

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