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[hfe_template id='11223'] [ad_1] Federal Reserve officials are widely expected to leave interest rates unchanged Wednesday as they await clarity on the Trump administration’s trade policies, a move likely to frustrate the president and anyone else seeking answers about the US central bank’s next move. An aggressive slew of tariffs on imported goods is denting consumer confidence, with households bracing for a potential spike in consumer prices and a weakening job market. Yet the latest data show inflation decelerated in March, while the unemployment rate remained steady in April. Bloomberg Fed officials have stressed in recent public comments that while uncertainty is unusually high, monetary policy is still in a good place to balance their goals of fostering maximum employment and stable prices.“Hard data is still holding up,” said Sarah House, senior US economist for Wells Fargo. “I think we’ll also hear that uncertainty is high in this environment, and they are ready ...

[hfe_template id='11223'] [ad_1] President Donald Trump on Tuesday backed off from threats to fire Federal Reserve Chair Jerome Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates. "I have no intention of firing him," Trump told reporters in the Oval Office on Tuesday. "I would like to see him be a little more active in terms of his idea to lower interest rates," he added. The de-escalation drew an immediate thumbs up from Wall Street, as equity index futures jumped by nearly 2% on the resumption of trading on Tuesday evening. Stocks, bonds and the U.S. dollar had all slumped on Monday after Trump over the Easter holiday weekend repeatedly attacked Powell for not cutting interest rates further since the president resumed office in January. "Whether this reflects Monday's brutal foretaste of what would happen in markets if he did try to fire Powell, or was the plan all along, it is a clear po...

[hfe_template id='11223'] [ad_1] Shares of Indian IT companies came under pressure during Monday's trading session following comments from Federal Reserve Chair Jerome Powell on Thursday. Powell suggested that the U.S. Federal Reserve is likely to slow down interest rate cuts in the coming months, citing persistent inflation and the need to monitor its trajectory before making further decisions. “The economy is not sending any signals that we need to be in a hurry to lower rates,” Powell said in a speech to business leaders in Dallas. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully." Powell emphasized that policymakers still view inflation as being "on a sustainable path to 2%," allowing the U.S. central bank to adjust monetary policy gradually without aiming to slow down the economy. Also Read: FPIs reduce pace of selling in Indian equities in two weeks of November However, the exact n...

[hfe_template id='11223'] [ad_1] The U.S. dollar was poised for big weekly gains on Friday, towering near one-year highs as a hawkish turn from the Federal Reserve chief sent short-term Treasury yields higher, leaving Wall Street and European futures in the red. Asian shares looked to end a brutal week on a steadier note, helped by Chinese data retail sales in the world's second-biggest economy beat forecasts in October in a welcome sign for consumer spending, although other indicators missed. Overnight, Fed Chair Jerome Powell said there was no need to rush rate cuts with the economy still growing, the job market solid and inflation still above the 2% target, tempering expectations for a rate cut next month. Fed fund futures for next year slumped with December off 7 ticks and imply just 71 basis points of rate cuts by end-2025. A rate cut next month is no longer a high probability event, with just 61% priced in, down from 82.5% in the prior session. That lifted th...

[hfe_template id='11223'] [ad_1] As the markets were trying to digest the impact of a Trump presidency from next year, the US Federal Reserve went ahead with a 25 basis point rate cut as expected. While Nasdaq ended 1.5% higher, Sensex and Nifty were still looking for a direction amid consistent FII outflows and worries related to a sluggish Q2 earnings season. US bond yields declined following the cut, with the 10-year yield moving below 4.35% after Fed Chair Jerome Powell said the election outcome had no near-term policy impact. As Powell sought to keep FOMC's options open for the December meeting, reiterating the Fed's data-dependent stance rather than providing concrete forward guidance, it led to a relief rally in bonds, while the USD weakened. Also read | FIIs just sucked out Rs 26,000 crore from banks and financial stocks. More pain on the way? While the Fed is in charge of short-term interest rates, longer-term borrowing costs are typically dictated by th...

[hfe_template id='11223'] [ad_1] The Federal Reserve’s move to slash interest rates reverberated across the 2024 presidential race as Democrat Kamala Harris hailed the move as a boon for middle class families while Republican Donald Trump suggested the cut may have been politically motivated. The heated rhetoric over the Fed’s decision to lower its benchmark interest rate by a half percentage point highlighted how the central bank — an independent institution whose Chair Jerome Powell has pledged not to allow political pressures to influence decision making — could be swaying the momentum of the 2024 presidential race with just seven weeks until Election Day. The dueling narratives also underscored the extent to which the economy and interest rates have rapidly become a focal point in the race, with both parties seeking to use the move to bolster their election standing. Trump, speaking at a campaign stop at a bar in Manhattan, framed the cut as a “very unusual number” a...

[hfe_template id='11223'] [ad_1] The world economy’s tectonic plates will shift this week when a US easing cycle begins, just as officials from Europe to Asia set policy against a backdrop of brittle markets. A 36-hour monetary rollercoaster will start with the Federal Reserve’s probable decision to cut interest rates on Wednesday, and finish on Friday with the outcome of the Bank of Japan’s first meeting since it raised borrowing costs and helped sow the seeds of a global selloff. Along the way, central banking peers in the Group of 20 and beyond that are poised to adjust their own policy levers include Brazil, where officials may tighten for the first time in 3 1/2 years, and the Bank of England. The UK central bank faces a delicate judgment on the pace of its balance-sheet unwind, and may also signal how ready it is to ease further. South African policymakers are anticipated to cut borrowing costs for the first time since 2020, while counterparts in Norway and Turkey ...

[hfe_template id='11223'] [ad_1] Foreign investors infused nearly ₹11,000 crore in domestic equities in the first week of the month owing to resilience of the Indian market and expectations of rate cut in the US. Foreign Portfolio Investors (FPIs) have been consistently buying equities since June. Before that, they had pulled out funds to the tune of ₹34,252 crore in April-May. The recent inflows are promising and could continue, supported by India's stable macroeconomic position. However, global factors like US interest rate and geopolitical scenario would continue to be the driving force, said Himanshu Srivastava, associate director-manager research at Morningstar Investment Research India. According to the data with the depositories, FPIs put in a net investment of ₹10,978 crore into equities this month (till September 6). FPIs have been on a buying spree in the Indian equity markets after the sentiments improved following comments from US Federal Reserve Chair Je...

[hfe_template id='11223'] [ad_1] Stock markets jumped on Friday after US Federal Reserve chief Jerome Powell made clear that the central bank was ready to cut interest rates as inflation is cooling. The Dow was up 476 points or 1.17 percent following the speech while the broad-based S&P 500 gained more than one percent and the Nasdaq bounced by 1.3 percent. All three had closed in the red on Thursday. The dollar, which performs better when borrowing costs are higher, fell against the euro, the pound and the yen, which also strengthened after Bank of Japan chief Kazuo Ueda signalled that Japanese rates could rise again. Investors had been on tenterhooks all week in anticipation of a key speech by Powell at an annual gathering of central bankers in Jackson Hole, Wyoming. Traders were hoping that Powell would leave no doubts that a rate reduction was on the way after data earlier this month raised recession fears and rocked the markets. The next Fed rate decision is nex...

[hfe_template id='11223'] [ad_1] South Korean shares fell on Monday, ahead of a series of monetary policy events this week, with chipmakers dragging the benchmark index lower. ** The benchmark KOSPI index was down 11.91 points, or 0.44%, at 2,685.32, as of 0137 GMT, on track to snap a five-session rally. ** The U.S. Federal Reserve will release the minutes of its latest monetary policy meeting this week, and its Chair Jerome Powell is scheduled to give a speech at the annual Jackson Hole event. ** The Bank of Korea will meet on Thursday for an interest rate decision, after keeping rates on hold at a 15-year high of 3.50% for the 12th straight meeting in July. ** Chipmaker Samsung Electronics fell 2.12% and peer SK Hynix lost 2.85%, and were the biggest decliners among index heavyweights. ** Battery makers also fell, but e-commerce firms and biopharmaceutical stocks rose. ** Of the total 936 traded issues, 370 shares advanced, while 503 declined. ** Foreigners were net ...

[hfe_template id='11223'] [ad_1] Shares in Australia and Japan fell Wednesday while Chinese futures pointed to gains ahead of key economic data after fresh highs of US equities. Hong Kong futures contracts rose earlier, following a Tuesday rally for mainland stocks and a gauge of US-listed Chinese shares. The S&P 500 advanced for a sixth consecutive session, its longest winning streak since January, as traders held to bets the Federal Reserve will cut rates this year. The Nasdaq 100 also set a fresh record. Fed chief Jerome Powell was careful not to offer a timeline for rate cuts in comments to lawmakers on Tuesday. However, he emphasized mounting signs of a cooling job market after government data showed a third straight month of rising unemployment. Australian bonds fell in early trading, echoing moves in long-dated Treasuries. Shorter-term Treasuries outperformed Tuesday on bets they would more likely benefit from policy easing. The rhetoric “continued to move tow...

[hfe_template id='11223'] [ad_1] Stocks in Asia edged higher ahead of Jerome Powell’s testimony to Congress and the start of the US earnings season. Equity benchmarks rose in Japan, Australia, and South Korea , while futures pointed to losses in Hong Kong after an index of Chinese shares in the US dropped on Monday. US futures gained in early Asian trading after the S&P 500 closed a fraction higher to set its 35th record this year. The dollar and Treasuries were little changed. Traders will be focused on Powell’s testimony beginning Tuesday for guidance on the Federal Reserve’s outlook. He faces pressure from lawmakers growing impatient for interest-rate cuts and others who are unhappy with the Fed’s latest plan to boost capital requirements for Wall Street lenders. Markets are pricing the chance of two rate cuts this year, with a roughly 70% chance of the first in September, according to swaps data compiled by Bloomberg. “With the recent signs of softer growth and l...