The Federal Reserve will keep raising interest rates as long as it is needed to bring inflation back to its long-term target of 2% per year given that the US economy is not cooling as was initially thought, Chairman Jerome Powell said on Friday.
The Nikkei ended the day up 1.23% at 32,700.94. Of the index s 225 components, 198 rose, while 25 fell and two were flat. The broader Topix added 0.84% to 2,281.18. Transport equipment makers gained 1.65% to be among the top three industry sectors on the Tokyo Stock Exchange.
A top Federal Reserve official discusses the possibility of further interest rate hikes to combat inflation, emphasizing the importance of data dependency for future decisions. Explore the impact of recent rate increases and the need to address stubborn inflation while maintaining a restrictive policy stance.
US banking crisis looks far from over. Los Angeles-based bank holding company PacWest Bancorp is reportedly exploring strategic options, including a sale or capital raising, fuelling concerns about a possible collapse.
The dollar strengthened on Wednesday, lifted by rising Treasury yields, though the pound gained against the greenback after British inflation stayed above 10 percent in March and put more pressure on the Bank of England to keep raising rates. The dollar index, which tracks the currency against a basket of its peers, was up 0.206 percent as markets turn more skeptical that the Federal Reserve will cut rates later this year. The yield on two-year Treasury notes, which are sensitive to expectations for the U.S. central bank’s monetary policy, rose 7 basis points to 4.269 percent after hitting a one-month high of 4.286 percent.
The US central bank might not need to raise interest rates on a monthly basis anymore as inflation in the United States appears to be cooling, Federal Reserve Bank of San Francisco President Mary Daly said on Wednesday.
Commodity currencies such as the Australian, New Zealand and the Canadian dollars strengthened against their major rivals in the Asian session on Friday, as stocks rebounded from recent losses with risk sentiment improving after First Republic Bank and Credit Suisse secured a lifeline, which helped ease recent concerns about turmoil in the banking sector.
A Labor Department report showed that Americans continued to be hit by higher costs for rent and food, causing US consumer prices to accelerate in January
A Labor Department report showed that Americans continued to be hit by higher costs for rent and food, causing US consumer prices to accelerate in January