US Fed prepping the markets for taper; a correction will be good: Analysts

Most Asian market equities - Nikkei, Sensex, Hang Seng and Kospi - lost ground in trade on Thursday as a result of the overnight development

The US Federal Reserve (US Fed) rejigged its expectations for inflation this year and signaled that it expects two rate increases by the end of 2023 as their Covid-impacted economy stutters back to life. However, the US central bank gave no exact date as to when the rollback of its bond buying program will begin. While the inflation projections confirm that the Federal Open Market Committee (FOMC) still thinks the current surge in inflation is transitory, they no longer feel comfortable waiting for 2024 to start the hiking cycle.

“The US Fed had to talk / hint about tapering plans