The Fed chief: There will be lower interest rate increases going forward

 

Fed chief: Lower interest rate hikes ahead Stock exchange joy after the announcement 

 

Of: 

 

Josefine Karlsson, 

 

Sebastian Laneby 

 

Published: Less than 2 hours ago 

 

Updated: Less than 20 min ago 

 

Fed chief Jerome Powell. Photo: Patrick Semansky/AP 

 

The US central bank will reduce the rate of interest rate increases. 

 

The announcement from the Fed chief caused the New York stock markets to jump for joy on Wednesday evening. 

 

- The time may be ripe already in December, said Jerome Powell. 

 

The interest rate is expected to rise at the end of the year in the US. The only question is how much. Or how little. 

 

During Wednesday, Jerome Powell spoke about the country's economic outlook - and he flagged that the central bank will slow down the pace. 

 

Thus, there could be talk of an increase of 50 points - and not 75 as we have seen before, at the latest at the beginning of November. 

 

"Warning Us" 

 

However, the Federal Reserve chief said tight monetary policy is still needed to bring down inflation. 

 

- Despite a promising development, we have a long way to go, said Powell. 

 

- History warns us against loosening the policy prematurely. We will stay the course until the job is done, he continued. 

 

Joy on the stock market 

 

The announcement of the slowdown caused the New York stock markets to jump. 

 

The S&P500, the stock index of the 500 largest listed companies, rose to just under 2 percent on Wednesday evening. 

 

Even the technology-heavy Nasdaq pulled ahead and rose at 20:40 to over 3 percent