U.S. stock markets are showing positive momentum in anticipation of the Federal Reserve's decision on interest rates, while significant events such as the ongoing conflict in Iran are on the horizon.
Stock Indices Rise Ahead of Fed Decision
In light of the anticipated Fed decision on interest rates, major U.S. stock indices are witnessing upward movement. On Wednesday, June 18, the Dow Jones added 132 points (0.31%), the S&P 500 increased by 0.40%, and NASDAQ was up by 0.55%. The Fed is expected to announce its rate decision at 2 PM Eastern Time, with market consensus suggesting that the central bank will keep rates unchanged, amid concerns over rising inflation.
Trump's Commentary on Rates and Iran
Former President Donald Trump has also weighed in on the Fed's anticipated decision, stating that rates should be at least two percentage points lower. He emphasizes that current rates negatively impact the economy. Trump also predicts that Fed Chair Jerome Powell is unlikely to cut rates anytime soon, continuing to apply pressure on the central bank.
Middle East Tensions and Iran's Response
While stock markets focus on the Fed, conflicts in the Middle East are intensifying. Trump has made threats toward Iran, not ruling out direct U.S. military involvement. "Nobody knows what I’m going to do," he said when asked about potential strikes on Iran. Meanwhile, Iran is responding to Israeli attacks with missiles and drones, creating further tension in the region, especially with U.S. support for Israel.
Thus, stock markets continue to monitor the Fed's actions and their implications for the national economy, while international conflicts, particularly in Iran, risk exacerbating existing economic challenges.
