- Fed Expected to Raise Interest Rates by 0.75%, Announce Plans to Start Reducing Balance Sheet
- Stocks close lower as investors weigh inflation risks. The S&P 500 and Dow Jones Industrial Average closed lower on Tuesday, as investors weighed the risks of rising inflation and a potential recession. The S&P 500 fell 0.5%, the Dow Jones Industrial Average fell 0.3%, and the Nasdaq Composite Index fell 0.2%.
- Oil prices rise on supply concerns. Oil prices rose on Tuesday, as investors worried about supply disruptions in the Middle East and North Africa. West Texas Intermediate crude oil futures rose 1.2% to $120.50 per barrel.
- Gold prices rise on safe-haven demand. Gold prices rose on Tuesday, as investors sought out safe-haven assets amid rising inflation and geopolitical tensions. Gold futures rose 0.5% to $1,854.50 per ounce.
- Bitcoin prices fall below $30,000. Bitcoin prices fell below $30,000 for the first time since July 2022 on Tuesday, as investors continued to sell risky assets amid rising inflation and a potential recession. Bitcoin fell as low as $29,730 before recovering slightly to $30,000.
In other news, the Federal Reserve is expected to raise interest rates by 0.75% at its meeting on Wednesday, in an effort to combat rising inflation. The Fed is also expected to announce plans to start reducing its balance sheet, which has swelled to $9 trillion as a result of its pandemic-era stimulus measures.
The US economy is facing a number of challenges, including rising inflation, supply chain disruptions, and the war in Ukraine. The Federal Reserve is trying to balance the need to combat inflation with the risk of causing a recession. Investors will be closely watching the Fed's actions in the coming months to see how they impact the economy.