- Fed's Powell's indication of a March interest-rate lift-off, as well as the risk of unexpectedly strong tightening, sent US equities futures and Asian stocks lower.
- In the midst of a vigorous economic recovery from the pandemic, Fed's Powell reaffirmed the Fed's aim to contain the greatest inflation in a generation. The central bank also stated that it expects the balance-sheet reduction process to begin once borrowing costs are raised.
- An Asia-pacific stock index fell to its lowest level in 14 months, with bear markets expected in South Korea and China, and Australia down 10% from its peak in August. The S&P 500, the tech-heavy Nasdaq 100, and European markets also fell. The Wall Street rally was cancelled due to the Fed's consequences.
- In the US session, two-year treasury rates, which are highly sensitive to Fed policy, soared to their highest levels since the emergence of the pandemic. A major portion of the yield curve was flattening out for the first time since early 2019, indicating growing concerns as the Federal Reserve reduces economic support.
- Bonds around the world, including those in New Zealand and Australia, have suffered losses. While commodity-linked currencies fell, the dollar rose to a one-month high. Oil fell, gold fell further, and Bitcoin, whose fortunes have recently been closely linked to stocks, fluctuated around the $36,000 mark.
