Tuesday, July 14, 2026
HomeEconomyExpect tapers to start this year punishing Wall Street - Stock Exchange

Expect tapers to start this year punishing Wall Street – Stock Exchange

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The Dow lost 1.08% to 3,4960.69 points, suffering its biggest drop in the past month. The S&P 500 also fell 1.07% to 4,400.27 points, also its worst performance since July 19. The Nasdaq Composite, this time, was the index least exposed to penalties, but it ended in the red with a drop of 0.89%, to 14,525.91 points.

Pressing the indicators were the minutes of the Federal Reserve’s July 27-28 meeting, which were released in the late afternoon. The documents show that most FOMC members are signaling the start of “declining” later this year, although other officials are betting that the “real” cut in stimulus will only begin in the first months of 2022, allowing time for improvement. continuous in the labor market.

“The minutes reflect the Fed’s willingness to anticipate the ‘declining’ calendar, possibly for the next few months,” Cornerstone Wealth analyst Sean Pandazian told Bloomberg.

“There are still reasons to believe that we will see volatility in the most interest rate sensitive market areas,” he added.

This is despite the fact that St. Louis Fed President James Bullard indicated this morning that he would prefer to start tapering only in the first quarter of next year, and that he sees it “make sense” that the last quarter of 2022 would be appropriate for the first time. . High interest rates.

Other FOMC elements, such as Dallas Fed’s Robert Kaplan and Kansas City Fed’s Esther George, argue that the start of stimulus withdrawal should begin as early as the September meeting.

Next week, the Federal Reserve meets for its annual symposium in Jackson Hole, awaiting analysts that there may be clearer signals about which calendar the Fed should choose to begin easing support for the economy.

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