Wall Street closes its worst week since the 2008 crisis

Wall Street closes its worst week since the 2008 crisis

New YorkUpdated:

Wall Street has registered its worst week since 2018 and the Nasdaq index has entered bearish territory falling more than 20% since its last upside peak, registered in August.

The Dow Jones, that on Friday fell 1.82% or 414.23 points, to 22,445.37 points, has left 7% this week. The selective S & P 500 it fell 2.06% or 50.84 units, to 2,416.58, adding a cumulative loss in the last five days of another 7%. For its part, the punished composite index of the market Nasdaq, yesterday left 2.99% or 195.41 whole, up to 6,333, accumulated losses of 8.5% between Monday and Friday.

Fears of a partial closure of the Government due to budgetary disagreements between US President Donald Trump and the Democratic opposition, as well as the Fed's announcement on Wednesday to increase interest rates for the fourth time this year has flooded the parquet floor with red.

It was useless for the President of the Federal Reserve of New York, John Williams, to assure that the institution could reassess its position in 2019. "What we are going to do next year is to reassess our opinions about the economy, listening not only to the markets but to everyone we talk to and looking at all the data," Williams told CNBC.

His statements, interpreted by investors as an opening of the Fed to rethink its recent rate increase, favored a slight rise in the New York parquet that, however, could not prevent the day closed in red and the week in catastrophe.

This fall contrasts with the solid economic data of the United States, with the best employment index of the last almost 50 years, a robustness that, precisely, was used by the Fed to raise rates.

But is that in the parquet it rains on wet, because these two new concerns added to the fear of the failure of the trade negotiations between the United States and China, which have been planning over Wall Street for months, as well as the fear of a global slowdown in growth.

Powell, on a tightrope

On the other hand, the US president, Donald Trump, is considering the possibility of dismissing the Federal Reserve (Fed) President, Jerome Powell, after the body raised interest rates this week, reported today the CNN, which cites two sources familiar with the matter.

CNN assures that Trump is "furious" with the Fed and has asked his advisors for advice on the possibility of expelling Powell, specifically on whether, as president, he can legally depose the head of US monetary policy.

Powell was chosen by Trump as president of the Fed and took office in February of this year with a four-year term.

This week, unanimously, the Fed decided to increase a quarter of a point interest rates, and left the price of money in a fork between 2.25% and 2.50%, at levels not seen in more than a decade in the world's leading economy.

The central bank took that step by ignoring Trump, who had asked the Fed not to make a "new mistake" with the rate hike, reports Efe.


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