Federal Reserve issues statement, Dow falls

The Dow Jones industrial average fell 222 points Wednesday.

(AP Photo/Andy Wong)

SPRINGFIELD, Mass. (WWLP) – The Federal Reserve issued a cautious assessment of the global economy Wednesday, while also downgrading its view of U.S. growth.

That’s caused some unease on the global stock markets.

The Dow Jones industrial average fell 222 points Wednesday, a large chunk of that loss belonged to Apple and to Boeing, which gave a disappointing 2016 outlook and suffered its biggest one-day loss in 14 years.

Over night Asian stock markets looked like they were off to a good start, before Japan and Shanghai both fell, leaving only Hong Kong closing higher.

Thursday’s fall in the Japanese stock market comes after it’s previous fall earlier this week, when the price of oil also fell.

Oil is currently controlling much of the stock market — while it’s low prices are creating lower prices at the pump, it’s having a negative affect on stocks.

The fed’s December rate-hike had raised expectations of several more increases this year, with the first as early as march.

In their latest statement, however, officials suggested that if stock market turmoil and global economic weakness persist, they might reduce the pace of future interest rate-hikes.

 

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