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 ...
Indian markets took a sharp hit in the previous session as foreign portfolio investors (FPIs) turned wary ahead of the Fed's policy outcome
The US Fed interest rate decision, inflation data and FIIs are the key factors that are expected to drive stock markets this week, analysts said. Also, global trends will also be tracked by investors for further cues, they added. "The Indian stock market's future trajectory will be influenced by a blend of global and domestic factors. Global trends, particularly the performance of US markets and the Fed's monetary policy decision, will play a significant role. Additionally, domestic economic indicators like inflation, will shape the market sentiment," Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said. The flow of foreign and domestic institutional investments will also be a key driver, he said. Gour further said the rupee's exchange rate and crude oil prices will be critical determinants of market direction. From the domestic macroeconomic data announcement, WPI inflation will be in focus on Monday. "The key focus will be on the US Federal Reserve meeting, wh
The rupee fell 2 paise to near all-time low of 84.85 against the US dollar in early trade on Thursday on the back of foreign fund outflows and rising crude oil prices
Asked about the potential for the Trump administration to try to weaken the dollar's value through a new version of the 1985 Plaza Accord, Yellen said that the Biden administration believes it's best
Expectations earlier this year that the US central bank would cut interest rates aggressively after hiking them to fight inflation have moderated in recent months
President-elect Donald Trump campaigned on the promise that his policies would reduce high borrowing costs and lighten the financial burden on American households. But what if, as many economists expect, interest rates remain elevated, well above their pre-pandemic lows? Trump could point a finger at the Federal Reserve, and in particular at its chair, Jerome Powell, whom Trump himself nominated to lead the Fed. During his first term, Trump repeatedly and publicly ridiculed the Powell Fed, complaining that it kept interest rates too high. Trump's attacks on the Fed raised widespread concern about political interference in the Fed's policymaking. On Wednesday, Powell emphasized the importance of the Fed's independence: That gives us the ability to make decisions for the benefit of all Americans at all times, not for any particular political party or political outcome. Political clashes might be inevitable in the next four years. Trump's proposals to cut taxes and impose steep and ..
The S&P 500, Nasdaq and Dow all notched record highs overnight and bitcoin, at times a barometer of the mood, was back within a whisker of $100,000
The Fed cut interest rate by 25 basis points on Thursday, as widely expected, amid a cooling labour market, while noting that economic growth remained solid
The comments, just two days after Trump's re-election, portend the power struggle that may lie ahead between the central bank and a president who insists he should have a say on interest-rate policy
Wall Street closed at record levels on Thursday, after the US Fed cut interest rate by 25 bps. Announcements regarding more stimulus measure from China, quarterly results, and macroeconomic data to be
Officials voted unanimously to lower the federal funds rate to a range of 4.5% to 4.75%. The adjustment follows a larger, half-point cut in September
The rupee suffered its worst day in 4-1/2 months on Wednesday, mirroring the slump in other Asian currencies amid uncertainty over what a Trump presidency will bring
The November 5 US presidential elections, Federal Reserve interest rate decision, trading activity of foreign investors, and the upcoming quarterly earnings from domestic firms are the major triggers that would influence sentiments in the equity market this week, analysts said. In an eventful week ahead, a host of macroeconomic data announcements and global trends would also drive the markets, experts said. "The upcoming week is poised to be eventful on the global front. The US presidential election on November 5 is a key focus, and the US FOMC (Federal Open Market Committee) meeting will be crucial. Geopolitical tensions and oil price movements will remain key variables as well," said Santosh Meena, Head of Research, Swastika Investmart Ltd. Domestically, the final phase of Q2 earnings will be critical, while foreign institutional investor (FII) behaviour will remain under close watch, Meena added. "The outlook for the market will be guided by the US presidential election and majo