Donald Trump has long pressured the Fed Chair to cut interest rates, especially after the administration imposed global tariffs on trade partners
Powell said it was not the Fed's role to comment on the Trump administration's policies but rather to react to how they might affect an economy that he and his colleagues made comment about
Trump ultimately prevailed in the election and has mused in the past about seeking to exert more influence over the central bank, which traditionally maintains independence from the White House
Fed's Powell downplayed simmering concerns about a slowdown but acknowledged tariff uncertainty was a factor and already contributing to goods inflation
The dollar index, which measures the U.S. currency against the yen, sterling and other peers, rose to as high as 108.02. It was last up 0.102% at 107.77
The unemployment rate is forecast at 4.1 per cent amid historically low layoffs, with wages rising solidly
Tariffs on China are set to begin on Tuesday, and Trump has signaled he will impose duties on other trading partners as well
Inflation is nearly contained, but the Fed sees enough uncertainty and risk on the horizon that it has moved to the sidelines, at least for now
Trump, who frequently criticized Powell and the Fed during his first term, again is testing those limits, saying last week that he'll "demand" immediate interest-rate cuts
In the previous session, the Sensex jumped 631.55 points, or 0.83 per cent, to settle at 76,532.96. The Nifty50 also added 205.85 points, or 0.90 per cent, to close at 23,163.10
Trump's comments came hours after he delivered a video address to the world's elite at the World Economic Forum in Davos, Switzerland, where he called for an immediate drop in interest rates
Asian currencies were mostly higher, with the Chinese yuan ticking higher as the country's economic growth beat forecasts
The Fed is anticipated to hold its benchmark overnight rate steady in the 4.25 per cent-4.50 per cent range at its meeting later this month, but investors had expected the pause to last June
US inflation probably worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much this year. On Wednesday the Labour Department is expected to report that in December the consumer price index rose 2.8% from a year ago, according to economists surveyed by FactSet, up from a 2.7% yearly increase in November. It would be the third straight rise, after inflation fell to a 3 1/2 year low of 2.4% in September. The uptick could fuel ongoing concerns among many economists and in financial markets that inflation has gotten stuck above the Fed's 2% target. Such concerns have sent interest rates on Treasury securities higher, which has also pushed up borrowing costs for mortgages, cars, and credit cards, even as the Fed has cut its key rate. Last Friday's unexpectedly strong jobs report caused stock and bond prices to plunge on fears that a healthy economy could keep inflation
FOMC projections, dollar surge, and policy uncertainties pressure emerging markets
Dow Jones: The Dow Jones Industrial Average slid 1,123.03 points, or 2.58 per cent, to 42,326.87 on Wednesday - declining for a 10th day and clocking its longest losing streak since 1974
Asian stocks have taken the cue from Wall Street, with MSCI's broadest index of Asia-Pacific shares outside Japan down 1 per cent
The central bank delivered its 3rd consecutive rate cut but signaled a slowdown in future reductions, leaving investors wary. The Fed trimmed its benchmark interest rate by a widely anticipated 25 bps
For the Dow it was its tenth consecutive daily loss, marking its longest losing streak since 1974 and its biggest daily percentage decline since early August
Federal Reserve officials on Wednesday will likely signal a slower pace of interest rate cuts next year compared with the past few months, which would mean that Americans might enjoy only slight relief from still-high borrowing costs for mortgages, auto loans and credit cards. The Fed is set to announce a quarter-point cut to its benchmark rate, from about 4.6% to roughly 4.3%. The latest move would follow a larger-than-usual half-point rate cut in September and a quarter-point reduction in November. Wednesday's meeting, though, could mark a shift to a new phase in the Fed's policies: Instead of a rate cut at each meeting, the Fed is more likely to cut at every other meeting at most. The central bank's policymakers may signal that they expect to reduce their key rate just two or three times in 2025, rather than the four rate cuts they had envisioned three months ago. So far, the Fed has explained its moves by describing them as a recalibration of the ultra-high rates that were ...