Policy makers backed raising rates at their next meeting in July by either 50 or 75 basis points, according to minutes of the FOMC's June 14-15 policy meeting released Wednesday in Washington
The S&P BSE Sensex and Nifty50 indices hit 52-week lows on Thursday, as economists fear a recession could be around the corner for the US. Markets watchers see more pain ahead for the Indian markets
At 8.5%, the US is feeling the inflation heat. After the US Fed Chief hinted at a 50-bps rate hike in May, the Indian markets crashed last Friday. Does this mean a bearish market for investors ahead?
Analysts have also said investors in safe-haven gold will continue to closely track political and economic risks posed by Russia's invasion of Ukraine, which has entered its fourth week
Asian stocks surged Thursday while European markets opened lower after the Federal Reserve announced its first interest rate hike since 2008 and China promised support for its real estate and internet industries. Oil prices rose more than USD4 per barrel. London and Frankfurt and Wall Street futures sank. Hong Kong's market benchmark jumped more than 7per cent and Tokyo gained 3.5per cent. Shanghai, Seoul and Sydney advanced. Wall Street's benchmark S&P 500 index rose 2.2per cent after the Fed raised its short-term lending rate by 0.25 percentage points on Wednesday. The widely anticipated change was less than the 0.5 percentage point hike advocated by some officials. "Far from choking off growth, the start of the Fed tightening cycle seems to have been greeted warmly," Chris Turner and Francesco Pesole of ING said in a report. Investors are cheering measures to address high inflation. In early trading, the FTSE 100 in London lost 0.1per cent to 7,283.28 and the DAX in Frankfurt .
The rapid wage growth underscored the case for a more aggressive tightening by the Fed
This follows a wait-and-see approach laid out earlier this month by several other Fed policymakers, making clear that a consensus has emerged among the 17 Fed officials who will meet on Jan. 29-30
Determining the appropriate level of the interest rate depends on balancing a changing array of considerations
Trump added that he needed the flexibility of lower interest rates to support the broader US economy as he fights a growing trade battle against China, and potentially other countries
He also said an ageing population could pose structural challenges for central banks
The combination of narrowing rate differentials and continued trade uncertainty means the yuan will face renewed pressure
One of the reasons why the surplus economies are under less pressure is foreign investor positioning
Powell's first testimony as Fed chair strikes an upbeat note
This is expected to signal a vote of confidence in the US economy
In September 2015, Fed cited risks from China as a key reason for delaying 1st rate hike in a decade
Robert Kaplan supported the Fed's two interest-rates hikes so far this year
However, US economy likely regained speed in Q2 after sluggish performance at the start of the year
Yesterday, Fed Chair downplayed weakness in inflation and said conditions are ripe for next hike
Markets read the Fed's announcement as dovish, as now only two rate hikes are expected this year
The gradual approach in future increases augurs well for emerging markets, tweets Shaktikanta Das