Reporters reported that The Dow Jones Industrial Average fell more than 200 points today amid concerns about a jump in US Treasury yields.
Latest at 9:36 p.m. Thai time, the Dow Jones Industrial Average stood at 31,287.16 points, minus 207.16 points or 0.6%.
The 10-year U.S. Treasury Bond is the benchmark for determining the price of debt securities worldwide. This includes mortgage loan interest rates. and US car loan interest rates If government bond yields rose will make consumers have less money for spending
while the cost of paying interest on loans increases And companies will face higher costs of debt settlement. This will allow these companies to reduce their investment. and reduce dividend payments to investors
Federal Reserve Chairman Jerome Powell is due to deliver his semiannual statement on monetary policy and economic conditions to Congress this week.
Powell will address the Senate Banking Committee tomorrow. and to the House of Representatives Financial Services Committee on Wednesday. according to tradition The Fed chair is scheduled to give a statement to Congress twice a year, the first in February. and again in June or July
Investors are keeping an eye on Mr Powell’s statement. To find signs of economic conditions, inflation, the direction of US interest rates. including the impact of the COVID-19 epidemic on the US economy
Powell’s statement this week is the first time he will deliver a speech to the new Congress where Democrats dominate in both the Senate and the House of Representatives. While President Joe Biden’s government is also a Democrat.
In addition, Mr Powell’s statement was considered important. Because investors are worried that A rebound in US Treasury yields. And the inflation numbers signaled a sharp rise. May push the Fed to end its monetary easing policy. After previous forecasts that the Fed will keep interest rates near 0% for the next two years.
Incidentally, previously The Fed previously signaled a slowdown in economic stimulus by cutting its bond purchases in accordance with its quantitative easing (QE) measures in 2013, which led to a reduction in money injections into the economy. This caused Wall Street and global stock markets to plunge heavily that year.