The latest headlines on Powell add another element of risk to the dollar and US Treasuries, which are both already under pressure from uncertainties around the impact of tariffs and a ballooning fiscal deficit.
The Fed’s current stance reflects deep uncertainty about the economic fallout from the ongoing tariff war, especially between the US and China, as officials of both countries are set to meet in Switzerland on May 8.
US Fed Meeting Highlights: Fed's move to keep interest rates steady at 4.25-4.5% runs counter to Donald Trump’s view that he should have influence over Fed policy
The US central bank is widely expected to hold interest rates steady at the end of its two-day meeting on Wednesday, marking the first pause in the rate-cutting cycle it kicked off in September.
Japanese investors sold a record $61.9 billion of the securities in the three months ended Sept. 30, data from the US Department of the Treasury showed on Monday. Funds in China offloaded $51.3 billion during the same period, the second biggest sum on record.
Swaps traders boosted to about 80% the probability that the Fed will cut rates again on Dec. 18, up from around 56% earlier Wednesday.
While the likelihood of a rate cut by the RBI has increased in H2FY25, an October cut is not likely, given the food inflation risks
US Fed meeting Date & Time: All official channels of the US Fed will host this conference live. The clear guidance from Powell will impact the investors across the world.
A Bloomberg index of world’s 124 mid- to large-sized energy companies has risen by 4.7% so far this year, and half of the top 10 performers are Indian energy companies.
With the Fed on the cusp of lowering borrowing costs from a more than two-decade high, Powell’s comments will be closely parsed for any kind of signal about the timing, size and pace of interest-rate cuts.
Key for the Federal Reserve will be U.S. consumer prices on Wednesday where economists look for rises of 0.2% in both the headline and core, with the annual core slowing a tick to 3.2%.
In this episode of Market Minutes, Harshita talks about the key factors to watch out for today before domestic equity market open. Markets may react to US Federal Reserve's move to keep key interest rates unchanged for a third straight time. US policymakers are forecasting three cuts in 2024. IRCTC in focus as it eyes major expansion in non-railway catering business pan India. NBCC bags work order worth Rs 1,500 crore from National Cooperative Development Corporation. Catch the global market set up, and also hear from Rajesh Pherwani of Valcreate PMS in the Voice of the Day segment. Market Minutes is a morning podcast that puts the spotlight on hot stocks, key data points, and developing trends.
Spot gold was up 0.1% to $2,043.58 per ounce by 10:17 a.m. ET (1517 GMT), after hitting its highest since May 5.
Commerce Department data showed US gross domestic product(GDP) rose at a 5.2% annualized rate last quarter, revised up from the previously reported 4.9% pace and marking the fastest pace of expansion since the fourth quarter of 2021.
Brent futures fell $2.02, or 2.5%, to $80.43 a barrel by 12:35 p.m. (1735 GMT), after falling as low as $78.41. US West Texas Intermediate crude was down $2.04, or 2.6%, at $75.73, after hitting a session low of $73.79.
Fed officials agreed at their last policy meeting that they would proceed "carefully" and only raise interest rates if progress in controlling inflation faltered, the minutes of the October 31-November 1 gathering showed.
All three major US stock indexes were lower, with the tech-laden Nasdaq down the most as investors await chipmaker Nvidia Corp's results after the closing bell.
Developments over three days caused a wave of buying across assets
Brent crude futures were up 91 cents, or 1.08%, at $85.54 a barrel by 1250 GMT, while US West Texas Intermediate crude futures gained 83 cents, or 1.03%, to $81.27 a barrel.
The US central bank announced in a policy statement that it had decided to hold the policy rate steady in its current 5.25% to 5.50% range for now.
Amid negative global cues, Indian markets opened lower on Thursday with the Nifty 50 and 30-share Sensex tumbling over half a percent.
Analysts believe that the upward movement in US bond yields after the Federal Reserve's latest decision can play a spoilsport for Indian markets in the near term
The U.S. dollar index, which measures the currency against a basket of rivals, was 0.076% lower at 105.04, after having been as low as 104.66 earlier in the session.
Fed policymakers at the median still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range, just a quarter of a percentage point above the current range
As market participants try to gauge the Fed's monetary policy trajectory, some big investors, including J.P. Morgan Asset Management and Janus Henderson Investors, have said the central bank is likely done hiking rates, following the most aggressive monetary policy tightening cycle in decades.