Investor Alert: Fed’s hint at March interest rate sparks panic in markets
The Federal Reserve meeting on January 31 announced another decision to keep its interest rate target at 525-550 basis points (bps) or 5.25-5.50%. This was the overall expected outcome since the last meeting. However, the shock came with Jerome Powell’s hint for March’s meeting, saying an interest rate cut is not likely. Consequently, leading financial indicators dropped massively following the announcement, causing markets to bleed. In particular, Finbold gathered data on six financial indicators from TradingView on February 1. Gold, Bitcoin (BTC), and the total market capitalization of all cryptocurrencies lost 0.34%, 1.10%, and 0.77% against the dollar. Meanwhile, Dow Jones Industrial Average (US30), S&P 500 (SPX), and Nasdaq 100 (NDX) dropped by 0.01%, 1.61%, and 1.94%, respectively. These are the three leading indicators for the stock market in the United States, signaling panic sell-offs. Leading financial indicators performance on February 1. Source: TradingView March...