The probability of a 50-basis-point cut has more than quadrupled to 59% from just 14% last week, with a total of 119 bps in cuts now expected in 2024
He says that a 25-bp cut with a strong dovish message could be as effective as a 50-bp cut with minimal commentary
Nifty rises 0.75% to reclaim 25,000
All you need to know before the market opens on Tuesday, May 14: Gift Nifty hints a gap-up start; Zomato stock to react to Q4 earnings; Key levels to watch out on the Nifty, Bank Nifty.
China doesn't have such inflation worries, but rise in the premium of US 10-year government bond yields over their Chinese equivalents to a record high has sparked concerns over depreciation of yuan
Others see a slowing economy and weakening job growth on the horizon, pushing the Fed to cut in order to support the labor market
The US central bank, Powell said, is prepared to hike the benchmark rates and keep the borrowing costs high until inflation comes in the target range of 2%
The yuan weakened after the government reported unexpectedly low inflation
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
The dollar-yen pair is extremely sensitive to changes in long-term US yields
The S&P 500 is down 9% since mid-August, partially reversing a summer rebound after Federal Reserve Chair warned the central bank's single-minded fight against inflation could lead to economic pain
Oil prices were mixed on Monday as investors balanced expectations the OPEC will cut output to support prices against concerns sparked by Federal Reserve Chairman Jerome Powell
The dollar held onto recent gains against the euro and sterling on Friday ahead of Federal Reserve Chair Jerome Powell's widely-anticipated speech, which traders hope will offer clues on the U.S. cent
He said the US economy may depend on more fiscal stimulus to fight the economic impacts of the coronavirus
In a statement, the US Fed said it was cutting rates by a half percentage point to a target range of 1 per cent to 1.25 per cent
Moderate economic activity, weak business fixed investment and exports, and global uncertainties promoted the Fed to lower the key interest rates, a second since the recession of 2008
The chair, under pressure from President Donald Trump to cut rates soon and deeply, listed a series of economic and geopolitical risks that the Fed is monitoring
For the first time since Volcker, the incoming Fed Chair Jerome Powell's height is more than his predecessor's