By CCN: The Dow floundered on Thursday as the US stock market struggled to mount a convincing recovery from Wednesday’s triple-digit pullback. Meanwhile, the Federal Reserve continues to flex its independence, with Chair Jerome Powell refusing to bow to President Trump’s presumptuous demand that he cut interest rates.
Dow Quakes After Fed Defies Trump Rate Cut Demand
Powell’s move rattled the stock market and continued to weigh on major indices on Thursday morning. As of 9:37 am ET, the Dow Jones Industrial Average had lost 29.81 points or 0.11%; the DJIA last traded at 26,400.33. The S&P 500 traded sideways, while the Nasdaq rose 0.09% to 8,054.52.
On Wednesday, the US stock market took a significant step down during the afternoon session. The Dow slid by 162.77 points or 0.61% to 26,430.14. The Nasdaq dropped 0.57% to 8,049.64. The S&P 500 fared worst, sinking 0.75% to 2,923.73.
Today, Wall Street remains on edge following the latest Federal Open Market Committee (FOMC) meeting, after which Fed Chair Powell clapped back at the assertion that lagging inflation would force the Federal Reserve to initiate interest rate cuts.
“We suspect transitory factors may be at work,” Powell said. “If we did see inflation running persistently below, that is something the committee would be concerned about and something we would take into account when setting policy.”
Donald Trump and his advisors had placed severe pressure on the Fed to cut rates. Earlier this week, the president tweeted that the economy could “go up like a rocket” and set