Global stocks drop amid interest rate fears

Global stocks drop amid interest rate fears

New York: Stocks retreated Tuesday as investors awaited an announcement by the US Federal Reserve on its next interest rate hike, with an increase also expected this week from the Bank of England, as both countries aim to tackle soaring inflation. The Swedish central bank meanwhile unveiled its biggest rise in three decades earlier in the day, ramping up its policy rate by a full percentage point to 1.75 percent. Wall Street has been roiled in recent days by decidedly hawkish statements from central bankers, with the Fed expected to raise its key rate by another 0.75 percentage points. And the three major US indices all lost about one percent on the eve of the announcement. The Fed's policy-setting Federal Open Market Committee (FOMC) is scheduled to announce its decision at 1600 GMT Wednesday (8PM in Dubai, September 21, 2022). The announcement has been the main focus for the markets after figures last week showed consumer prices are still rising at a pace not seen since the early 1980s. "Right now the market is in wait and see mode And it's waiting to see what will happen from the Fed," said Adam Sarhan of 50 Park Investments. "And then investors