Stock prices increase, as US banks give low interest rates

Stock prices increase, as US banks give low interest rates

The stocks rose on Thursday as US reserve bosses say no increase in interest rates. Various investors have chosen to buy some shares believing it will continue to rise for a while. 

Global stocks rise due to US low interest percentage 

Global stock prices soared on Thursday noon when the US Federal Reserve boss Jerome Powell said that America's interest rate will stay reduced for a while. This brought calm among markets as many fears that high inflation would make the central bank increase interest rates. Powell's message assuages investors who were hoping for a quick recovery from the world's biggest economy. 

Many investors hope that consumer prices will increase and boost assets like stocks which will make American bonds a positive ratio. Jerome Powell had insisted that America will return to its pre-pandemic economy position very soon. Japanese Nikkel saw an increase of 1.7% while keeping rates low. He also promises to get tough with the Chinese on economic matters. 

Inflation is still high and will take some time to decline 

European bonds are expected to be higher with Euro Stoxx and FTSE going up to 0.6 %. Hong Kong shares increase to 1.6% to gain more than 50% after its loss. Mr. Powell pledged that the economy of the country will improve unless inflation percentages affect price modulation. 

However, to get a favorable inflation index, it will take at least two years, and promises not to increase interest rates till at least 2023. President Biden and Treasury boss Yellen have been trying to find a good way to kick-start the economy. The first step is getting the $2 billion economic package. However, there is resistance to this package from Republicans, who say the package is too large.

While agreeing that the injection is big, democrats have insisted that such cash is needed to make the economy better.

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