Value shares, digital currencies, gold and bets on a flatter yield curve are seen as some of the potential beneficiaries from a higher inflation environment
Analysts said the sharp rise in U.S. government bond yields, including the 30-year Treasury passing 1.5%, was behind the dollar's jump
Inflation is starting to look like that unexpected and unwanted houseguest who just won't leave
The consumer price index increased 6.2% from October 2020
US gold futures rose 1.1% to $1,851.40
The euro held steady against the dollar on Tuesday and most currency pairs were stuck as traders waited for U.S. inflation data later in the week and more speeches from central bank governors
Even in announcing a $15 bn monthly cut to its $120 bn in monthly purchases of Treasuries and mortgage-backed securities, the Fed did not signal when it may begin next phase of policy 'normalisation'
US stocks rose slightly, while yields on 10-year Treasuries maintained an earlier decline; the dollar remained lower after the decision
MSCI's world stocks benchmark fell 0.33%, and all 11 major sectors in the S&P 500 ended the session lower, with energy and financials falling the most.
Spot gold was up 0.1% at $1,730.31 per ounce by 0637 GMT, and US gold futures rose 0.1% to $1,732.70
Gold prices slipped on Thursday, just below a four-week high hit in the previous session as dollar clawed up in Asia trade after falling day before
Any move to pull back support for the economy, by first slowing the US central bank's $120 billion in monthly bond purchases, is 'still a ways off,' Powell says
Stocks on Wall Street at first took the CPI data in stride, bidding up technology stocks that typically thrive with low interest rates
The consumer price index increased 0.9% last month, the largest gain since June 2008, after advancing 0.6% in May.
Nine of the 11 major S&P 500 sector indexes were trading lower, with the defensive real estate and utilities sectors leading declines.
Gold prices edged higher on Tuesday as dollar weakened ahead of the release of US inflation data, increasing the appeal of the metal for holders of other currencies
Spot gold was down 0.3% at $1,802.90 per ounce by 0906 GMT. U.S. gold futures slipped 0.5% to $1,801.90 per ounce
Federal Reserve Chair Jerome Powell reaffirmed the US central bank's intent to encourage a "broad and inclusive" recovery of the job market, and not to raise interest rates too quickly
The Fed is keen to minimize the possibility of a market disruption when it begins to reduce its $120 billion per month government bond
Shares were mostly higher in Europe and Asia on Friday after the S&P 500 index notched another record high despite a surge in US consumer prices in May. Benchmarks rose in Paris, Frankfurt and Hong Kong but fell in Tokyo and Shanghai. On Thursday, Wall Street logged gains while bond yields mostly fell despite the much-anticipated report showing consumer prices rose 5% in May, the biggest year-over-year increase since 2008 and more than economists had expected. Investors also reacted positively to more data that showed continued improvement in the labour market. Markets will be tuning in this weekend for any developments at the summit of the Group of Seven in Britain. At the top of the leaders' agenda is helping countries recover from the coronavirus pandemic, which has killed more than 3.7 million people and wrecked economies. The G-7 leaders are meeting for three days at a British seaside resort. It's the first such gathering since before the pandemic. Investors will get to see