4 October 2023
By Seongwoo Song
The market's atmosphere has dramatically changed due to the message the US Federal Reserve (Fed) sent when it froze interest rates on the 21st of last month. He implied that there would be an extended period of high interest rates by saying he would keep them "higher for longer."
As the U.S. and other global economies begin to show indications of escape from the increase in inflation that has persisted since the COVID outbreak, hopes have grown that the pattern of interest rate hikes will halt soon.
In front of potential future interest rate decreases a number of international funds are currently transferring capital to long-term bonds.
The Fed's announcement suddenly defied market expectations that had only started to develop.
The S&P 500 index fell 4.9% in September due to a warning about persistently rising interest rates, according to the analysis published on September 29 (local time) by The Wall Street Journal (WSJ). This was the worst month for the American stock market since December of the previous year.
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