Earlier, traders were expecting the central bank to cut the repo rate, starting February
Rieder expressed his views on whether the US economy is out of crisis mode in terms of inflation, he said that once the inflation rate reaches close to three per cent, it becomes less concerning
Treasury yields plummeted, the S&P 500 opened higher and the dollar slid following the report. The chances of an additional Fed rate increase after this month slipped to well below 50%
European Central Bank President Christine Lagarde has cemented expectations for a ninth consecutive rise in euro zone rates in July
Leaders of the world's top central banks reaffirmed on Wednesday they think further policy tightening will be needed to tame stubbornly high inflation
The S&P 500 ended essentially unchanged, while the blue-chip Dow Jones Industrial Average closed negative territory, weighed down by healthcare stocks
Lagarde also talks tough, says not seeing enough sign of drop in inflation
Bitcoin fell to its lowest in three months on Wednesday after US Fed's statement hinted that it may increase the rates in the upcoming policy announcements
The US Federal Reserve kept its key interest rate unchanged Wednesday after having raised it 10 straight times to combat high inflation. But in a surprise move, the Fed signalled that it may raise rates twice more this year, beginning as soon as next month. The Fed's move to leave its benchmark rate at about 5.1 per cent, its highest level in 16 years, suggests that it believes the much higher borrowing rates it's engineered have made some progress in taming inflation. But top Fed officials want to take time to more fully assess how their rate hikes have affected inflation and the economy. The central bank's 18 policymakers envision raising their key rate by an additional half point this year, to about 5.6 per cent, according to economic forecasts they issued Wednesday. The economic projections revealed a more hawkish Fed than many analysts had expected. Twelve of the 18 policymakers forecast at least two more quarter-point rate increases. Four supported a quarter-point increase. On
Interest rates hikes may pause for the first time in almost 11 months, but uncertainty around the US monetary policy and its potential impact on domestic and global markets still looms
The U.S. legislation in essence temporarily removes the federal government's borrowing limit through Jan. 1, 2025
US job openings rose unexpectedly in April, illustrating the resilience of the American labour market even as the Federal Reserve attempts to cool the economy in its fight against inflation. Employers posted 10.1 million job openings last month, up from 9.7 million in March and the most since January. Economists had expected vacancies to slip below 9.5 million. Layoffs fell, but the number of people quitting their jobs a sign of confidence that they can find better pay or working conditions elsewhere slid last month. The Fed has raised its benchmark interest rate 10 times in the last 14 months, making it more expensive for businesses to borrow and invest. The central bank is hoping achieve a so-called soft landing raising rates enough to slow hiring, economic growth and price increases without tipping the world's biggest economy into recession. Economists are sceptical and many expect a recession to start later this year. Inflation has come down steadily from the four-decade
The possible end to the Federal Reserve's long campaign of rate hikes appears like an oasis to beaten-down Wall Street investors, but is it a mirage? With inflation cooling from its peak last summer, Wall Street overwhelmingly assumes the central bank will hold rates steady for the first time in more than a year when it meets next month. High rates knock down inflation by slowing the economy, raising the risk of a recession and hurting prices for all kinds of investments. The stock market has held steady in recent weeks as investors bet on a pause by the Fed, offsetting a long list of other concerns, from cracks in the US banking system to the US government's edging toward what could be a catastrophic default on its debt. History seems to be on Wall Street's side. Going back to the 1980s, the S&P 500 has jumped an average of nearly 6 per cent in the three months after the Fed makes its final increase in a rate-hike campaign. But something makes today different than those four ...
The Federal Reserve signaled it may pause further increases
The US Federal Reserve is expected to meet on May 2 and 3 to decide on further rate hikes
Nearly 90% - 94 of 105 - of the economists who participated in the latest poll, predicted the US central bank would hike its key policy rate by 25 basis points
Sterling rose to a new 10-month high against the dollar, while the euro reached its highest since February
Another major development in the crypto world during the week was the US Securities and Exchange Commission's 'Wells notice' to crypto exchange Coinbase
Overall, 10 developed economies have raised rates by a combined 3,290 basis points (bp) in this cycle to date
CLOSING BELL: Selling in heavyweights like SBI (down 2 per cent), HCL Tech, Infosys, Reliance Industries, HDFC Bank, HDFC, and ICICI Bank weighed on the benchmarks