In a TV interview, Chairman Jerome Powell of the US Federal Reserve indicated that he was not in a hurry to cut interest rates, saying, ``Since the economy is strong, we can carefully approach the issue of when to start lowering interest rates.'' . In response to this, sell orders increased in the New York stock market on the 5th due to expectations that high interest rates would continue, and the Dow Jones Industrial Average at one point fell by more than 400 points.
In an interview aired on CBS TV on the night of the 4th, Fed Chairman Powell was asked why he was not cutting interest rates now, saying, ``The economy is strong. Growth continues at a solid pace. The labor market is strong. The unemployment rate is 3.7%.With such a strong economy, we can carefully approach the question of when to start lowering interest rates,'' he said, indicating that there is no rush to lower interest rates.
In response, the New York Stock Exchange on the 5th saw an increase in sell orders due to the belief that interest rate cuts would start later than expected and that high interest rates would continue, causing the Dow Jones Industrial Average to drop more than 400 points at one point.
In addition, in the New York foreign exchange market, as long-term interest rates in the United States rose, people became aware of the widening interest rate differential between Japan and the United States, leading to yen selling and dollar buying, and the yen exchange rate temporarily fell to the low 148 yen level to the dollar. .
A market source said, ``The fact that an indicator of business confidence in the non-manufacturing industry announced on the day exceeded market expectations also led to the view that interest rate cuts will be delayed longer than expected due to the strength of the U.S. economy.'' I'm talking.