U.S. Treasury Secretary Yellen (Janet Yellen) said on Tuesday (4), in order to prevent large-scale government spending caused by economic overheating, may have to moderate interest rate increases. The remarks drove U.S. stocks to a short dive during the day, before the cutoff that refers to the decline expanded to 2.8%.
Yellen said in an interview recorded by The Atlantic on Tuesday that, compared to the overall economy, the scale of additional government spending, although small, but in order to ensure that the economy does not overheat, may have to raise interest rates, which is necessary to make the economy competitive and productive investment.
The above remarks stimulated a short dip in U.S. stocks. Taipei time on Tuesday (4) U.S. stock market, the four major indices fell to expand the trend, that the index fell 2.8%, the Dow Jones fell 280 points, the S&P 500 index fell nearly 1.5%, the fee and a half fell more than 3%.
In addition, spot gold extended its decline, falling 0.89% to $1,775.8 per ounce by press time. The dollar index briefly touched an intraday high, while the 10-year U.S. bond yield slipped to 1.591%.
In response to the impact of the new crown (CCP virus) epidemic, in addition to the 1.9 trillion dollar bailout case signed in March, Biden followed up with a total of about 4 trillion dollars “American Jobs Plan” and “American Family Plan”, triggering market debate on whether economic overheating triggers inflation The crisis debate.
In response, Fed officials have repeatedly stressed that this year’s price increases are only temporary, and the central bank has enough tools to respond, trying to downplay the market’s concerns about the sharp rise in inflation.
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