Economic expert analyzes: Dax is falling due to US key interest rates - outlook for upcoming interest rate easing

Economic expert analyzes: Dax is falling due to US key interest rates - outlook for upcoming interest rate easing

According to a report by home.1und1.de, the prospect of high key interest rates in the USA weighed on Wall Street and had a negative impact on the German stock market. The Dax fell by 0.40 percent to 16,836.74 points, while the MDax fell by 0.54 percent to 25,819.59 points. The EuroStoxx also recorded a decline of around 0.6 percent.

The US Federal Reserve left interest rates unchanged and signaled that it was not yet ready to cut interest rates. Analysts expect a possible rate cut to come only after the next meeting in March if the Fed needs to moderate price increases without slowing the economy too much.

As a financial professional, it is important to note that high interest rates can increase investment costs and reduce loan demand. This could have a negative impact on economic growth and weigh on the stock markets. It is therefore advisable to keep a close eye on US interest rate policy developments as they can have a significant impact on global financial markets.

In this context, the Dax and other stock markets could remain volatile as investors watch for indications of potential interest rate changes. It is advisable to invest diversified and focus on different asset classes in order to spread the risk and protect yourself against possible market turbulence.