Fed pause reaffirms market fears on US growth

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Fed pause reaffirms market fears on US growth

As the US Federal Reserve had indicated last week that they were done with their rate hiking policy for now, putting an end to the vicious three-year rate hiking cycle, the stock gains had been fueled all over the world including Wall Street, while the investors’ worries appeared to be come true, as the US central bank seemed to have pledged a double-edged sword, signaling explicit confirmation of nerve-wracking anxiety of US growth.

Meanwhile, a White House official had been quoted saying that the deflations were always much worse than an inflation, triggering further questions to the underlying strength of US economy, which always remained too shy to show off its actual figures, in particular under the governance of Trump Administration.

Last week, the Fed Chair, Jerome Powell had been quoted saying that the US economy was solid and expected to hold forth, although his voice did not sound as much optimistic as it was six weeks ago, when he had said that the United States had the luxury to decide whether to raise interest rate again.

Although the Fed’s message sent S&P 500 to secure a record January gain and the global stocks mounted by 7.6 percent on January, multiple US analysts acknowledged that the Fed’s signal of putting an end to their hawkish rate hiking cycle could reflect a slower economic growth.