The markets closed ending another week in the red with the Dow, S&P, and Nasdaq all down around a percent. CNBC’s Bob Pisani reports on how the Federal Reserve’s recent interest rate hikes to combat inflation are scaring off investors as recession fears remain high. » Subscribe to NBC News: » Watch more NBC video: NBC News Digital is a collection of innovative and powerful news brands that deliver compelling, diverse and engaging news stories. NBC News Digital features NBCNews.com, MSNBC.com, TODAY.com, Nightly News, Meet the Press, Dateline, and the existing apps and digital extensions of these respective properties. We deliver the best in breaking news, live video coverage, original journalism and segments from your favorite NBC News Shows. Connect with NBC News Online! NBC News App: Breaking News Alerts: Visit NBCNews.Com: Find NBC News on Facebook: Follow NBC News on Twitter: #Recession #Fed #Nasdaq...(read more)
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The recent drop in the stock markets after the Federal Reserve announced new rate hikes has brought back concerns of a possible recession. The fear of an economic downturn has been looming for some time now, and this latest event only adds fuel to the fire. The Federal Reserve increased interest rates by a quarter-point, bringing the benchmark rate to 2.25 percent. This marks the third rate hike this year, which is a signal of the central bank's confidence in the economy. However, the stock markets did not respond positively to this announcement, with the Dow Jones Industrial Average dropping more than 800 points in just two days. The stock market is often seen as a barometer of the economy's health, and such a significant drop in such a short time has caused concern among investors and analysts alike. The market's reaction to the Federal Reserve's announcement indicates that many believe the economy may be slowing down. The fear of a recession is not new. Months before the announcement, there were already signs that the economy may be slowing down. Some of these indicators include a slowdown in global trade and manufacturing, rising debt levels, and a flattening yield curve. The yield curve is the difference between the yields of short-term and long-term government bonds. A flattening yield curve is often seen as a warning sign of a possible recession. In August, the yield curve for the two-year and ten-year Treasury notes reached its flattest point since 2007, just before the last recession. While the Federal Reserve's rate hikes may be intended to prevent a future inflation problem, they could also lead to an economic slowdown. Higher interest rates could lead to higher borrowing costs for businesses and consumers, potentially leading to a decrease in spending. There are also concerns about the impact of the ongoing trade war between the United States and China. The tariffs imposed by both countries could lead to higher costs for businesses and consumers, leading to a slowdown in economic growth. In conclusion, the recent drop in the stock markets after the Federal Reserve's announcement of rate hikes has brought back concerns of a possible recession. The economy has been showing signs of slowing down for some time now, and this latest event has only added to those fears. While the exact impact of these developments remains to be seen, it is crucial for investors and businesses to remain vigilant and adapt to changing economic conditions. https://inflationprotection.org/markets-drop-over-feds-new-rate-hikes-recession-fears-increase/?feed_id=84379&_unique_id=642bae1e0e692 #Inflation #Retirement #GoldIRA #Wealth #Investing #HallieJacksonNOW #NBCNewsNOW #RecessionNews #HallieJacksonNOW #NBCNewsNOW
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