owell acknowledged that interest rates might need to move higher than expected if economic conditions remained strong but reiterated that he felt a process of disinflation was underway
Markets were still reeling from the shock of Friday's jobs report, which showed that non-farm payrolls surged by an eye-watering 517,000 in January, well above expectations
Globally, investors fear that the US Fed will have to continue raising interest rates for longer than expected to cool labour markets and bring down inflation
Over the past year, global macroeconomic stability has improved, which sets the stage for good growth from 2024
"A monetary policy meeting this week and some important October-December 2022-23 results may influence the near-term direction of markets"
Adani Ent shares end 2.2% lower after recovering 50% from day's low
The European Central Bank has chugged ahead with another outsized interest rate increase, underlining its drive to subdue high inflation even as the European economy slows and the US Federal Reserve eases its pace of hikes. The bank raised its key benchmarks by half a percentage point Thursday and vowed a similar move in March. The Frankfurt-based policymakers are moving aggressively to get on top of price spikes that have slowed but are still hurting households in the 20 countries that use the euro currency. The bank said it will stay the course in raising interest rates significantly at a steady pace and in keeping them at levels that are sufficiently restrictive to ensure a timely return of inflation to its 2 per cent medium-term target." The Bank of England also went big with a half-point hike Thursday, but the Fed pulled back a day earlier, slowing to a quarter-point hike. While ECB President Christine Lagarde essentially announced the move at the bank's December meeting, her
The Federal Reserve raised its target interest rate by a quarter of a percentage point on Wednesday
Investors have viewed a weaker labor market as a key component to bring down stubbornly high inflation
The Fed is widely expected to raise the target rate to 4.5% to 4.75% at Wednesday's Federal Open Market Committee meeting
Gold tends to appreciate on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion
WTI is trading in contango, which means front-month delivery contracts are trading higher than later deliveries, indicating current oversupply
After a series of jumbo rate hikes in 2022 to tame inflation, the market is all but certain of a 25 basis points (bps) increase in interest rates later on Wednesday
Inflation is cooling, and parts of the economy appear to be weakening. But Chair Jerome Powell is likely Wednesday to underscore that the Federal Reserve's primary focus remains the need to fight surging prices with still-higher interest rates. With financial markets anticipating that the Fed will stop raising rates soon and possibly even cut them later this year, analysts say Powell will need to push back against such optimism. If financial markets expect lower rates than what the Fed plans to deliver, the central bank's already treacherous task can become even harder. Powell's tough message will likely emerge at a news conference after the Fed's 19-member policy committee announces its latest action. The policymakers are set to raise their benchmark rate by a quarter-point to a range of 4.5% to 4.75%, its highest level in about 15 years. The move could further increase borrowing rates for consumers as well as companies, ranging from mortgages to auto and business loans. In some
Markets are pricing in a 25-basis-points hike (bps) by the Fed, after slowing its pace to 50 bps in December, following four straight 75-bp hikes
Higher rates could slow the global economy and weaken oil demand
The US dollar index, which gauges the currency against major peers, was up 0.31% at 102.56 on Tuesday
The euro rose as far as $1.0913 after data showed Spanish inflation running surprisingly hot in January, before the broader mood reeled it back to $1.0851
Gold prices edged up on Monday on a weaker dollar, as investor attention moved to central bank meetings this week for clarity on their rate hike strategies
Adani rout, budget, Fed meet keep investors on tenterhooks