Page 21 - Fomc News Today

KUALA LUMPUR: The ringgit retreated from yesterday's gains to end lower against the greenback on Thursday as the minutes from the United States’ Federal Open Market Committee (FOMC) pointed to US interest rates staying higher for longer, an economist said.

Federal Reserve governor Michelle Bowmans prepared remarks to an event in Colorado also came after a mixed employment report on Friday showing that hiring in the United States has slowed but wage gains remained robust. Bowman said she supported the policy-setting Federal Open Market Committees (FOMC) decision for a rate hike in July given "strong economic data and still elevated inflation."

Richmond Fed President Tom Barkin said the U.S. has avoided a recession because of pandemic-related changes in the economy, but growth is likely to slow.

The Federal Reserve is scheduled to set short-term interest rates again on September 20. The current assessment is that rates will hold steady.

The likelihood of a recession has plummeted from 73% to just 15%, and the FOMC will likely continue raising interest rates—likely pushing mortgage rates up even more.

The cost of goods and services rose a mild 0.2% in June as inflation eased again, but another measure of prices favored by the Fed showed less progress.

An obscure price tracker closely followed by economists also suggests inflation is slowing, but perhaps not quite as fast as the best-known indexes.

Policymakers in Europe could pose risks for markets with their interest-rate decision on Thursday

MOST Asian currencies were edging upwards on Thursday, with the Malaysian ringgit gaining the most, after the U.S. Federal Reserve delivered an expected 25 basis points (bps) rate hike, with market participants reading Fed Chair Powell's tone as more "moderate".

Currency hovers at 287 level in inter-bank market