Page 36 - Us Fed News Today

India Business News: Indian indices, Sensex and Nifty, opened lower on Thursday, tracking Asian peers. This comes after the US Federal Reserve hinted at higher interest ra

The US Fed delivered a more 'hawkish hold' than what markets had expected. It reinforced view that central banks in developed economies are increasingly guiding to holding rates higher for longer.

Central banks’ task is to convince financial markets not to undo their work with bets on early rate cuts, and to watch for new risks such as rising oil prices

Since the last meeting of the Fed, the Dow Jones Industrial Average has lost more than 2%, while the tech-heavy Nasdaq Composite has shed about 3%. On the contrary, Indias benchmark Nifty 50 has gained about 2% in the same period and scaled lifetime highs.

The Peoples Bank of China has been pushing down domestic rates and trimming bank reserve requirements in an effort to free cash for lenders to support the recovery. But by and large, Asian monetary authorities have adopted a version of the higher-for-longer mantra espoused by US policymakers

Powell has signaled that Fed leaders would prefer to wait to evaluate the impact of past increases on the economy as they near the end of their rate-hiking campaign. With inflation still well above the committees 2% target and the US economy resilient, officials may pencil in one more hike in their quarterly projections.

The UK can’t be seen as more dovish than counterparts the Fed and ECB

US Fed Interest Rate Decision: Will It Impact Indian Market? Experts say the Indian market's reaction on Thursday will be driven by the US Fed's commentary rather than the rate decision

The Fed held interest rates steady but stiffened its hawkish stance, with a further rate increase projected by the end of the year and monetary policy kept significantly tighter through 2024 than previously expected.

The move to leave its benchmark rate at about 5.4% suggests the Fed thinks it has time to wait and see its 11 rate hikes since March 2022 will continue to cool rising prices.