US stocks opened mixed Tuesday as the Fed’s hawkish stance and expectation that it might raise interest rates in March continued.
The Fed will use its tools to back the economy and a strong labor market to “prevent higher inflation from becoming entrenched,” said the bank’s chair Jerome Powell.
“The economy has rapidly gained strength despite the ongoing pandemic, giving rise to persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation,” Powell will say in prepared remarks to be delivered Tuesday at a US Senate hearing.
The Fed is expected to end its asset purchases in March and make at least three rate hikes in 2022, of which first could come as early as that month.
The Dow Jones industrial average was down 162.79 points, or 0.45%, to 36,068 at 9.35 a.m. EDT.
The SandP 500 fell 6.74 points, or 0.14%, to 4,670, while the Nasdaq rose 6.93 points, or 0.05% to 14,942.
Source: Anadolu Agency