Stock prices experienced a sharp decline: Inflation and expectations

Many people are worried that the possibility of inflation could lead to an increase in interest rates

by Sead Dedovic
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Stock prices experienced a sharp decline: Inflation and expectations
© Spencer Platt / Getty Images News

During the past few months, the world stock markets have experienced a significant drop in stock prices. Inflation is a big problem around the world, and the government is trying to find a way to solve it as soon as possible.

For some time to come, interest rates will remain elevated in a number of countries, including the US. There was a 1.9 percent decline in the Dow Jones last week, to 33,963 points, a 2.9 percent decline in the S&P 500, to 4,320 points, and a 3.6 percent decline in the Nasdaq index, to 13,211 points.

Among the most important sessions for investors during the year was the regular meeting of the American central bank. There was no change in the interest rates announced by Fed officials. Many people are worried that the possibility of inflation could lead to an increase in interest rates from 5.50 to 5.75 percent..

In addition to this, Fed leaders have also indicated that interest rates might remain high for a longer period of time than expected.

Interest rates

It has been estimated that interest rates are likely to be cut twice next year by the Fed, which is two less than they had expected in September's estimates.

As a result, for the upcoming year, the interest rate would decrease by a total of 0.50 percentage points, to reach 5.1 percent. The inflation predictions have already started to be made. Inflation is expected to drop at the end of the year according to some economists.

In view of the current situation, things do not seem to be looking good at the moment, but it is to be hoped that things will turn out well in the end. Inflation has the potential to cause a negative impact on the economy, and it is important for the government to take action to mitigate its effects.

It is also important for businesses and households to be prepared for any potential changes. We hope that one day this 'chaos' will come to an end, and that citizens all over the planet will live the life they want!

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