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Wall Street failed to hold its upward momentum on Wednesday, with all three major indexes crossing into negative territory as investors digested a slew of US economic data and earnings while reassessing the outlook for monetary policy. The Dow Jones shed more than 600 points, while the S&P 500 and the Nasdaq 100 fell 1.6% and 1.2%, respectively. In an interview with the Associated Press, Fed’s Mester said that the Fed will have to raise the interest rate above 5% to get inflation at the goal level of 2%. On the data front, US producer prices declined in December by the most since the start of the pandemic, and a drop in retail sales exceeded estimates, reinforcing bets that the Federal Reserve will slow its aggressive tightening campaign but exacerbating worries about a recession.