• News
  • Business

Asian Shares Mostly Lower As Fed Turns Hawkish

Asian Shares Mostly Lower As Fed Turns Hawkish

Citing strength in the USA job market, business investment growth, and "moderate but durable" economic expansion, the Federal Reserve-as expected-left interest rates unchanged at the end of its two-day policy meeting Wednesday.

The Fed statement on the unanimous decision following its two-day policy meeting was little changed from previous statements, reaffirming that officials expect the economic recovery to proceed amid continued gradual rate increases.

Interest rates have stayed low despite a shallow unemployment rate of 4.4 percent in August and inflation down to 1.4 percent.

Most economists don't expect the Fed to raise interest rates on Wednesday.

This sentiment was due to persistently low inflation and the negative impact of Hurricanes Harvey and Irma on economic growth.

"Storm-related disruptions and rebuilding will affect economic activity in the near term, but past experience suggests that the storms are unlikely to materially alter the course of the national economy over the medium term", according to the Federal Open Market Committee (FOMC) statement on September 20.

It maintained its guidance that one further interest rate hike was likely this year despite inflation coming in weaker than expected - adding timid price growth was being "closely" watched.

It forecasts only two increases in interest rates in 2019 and one in 2020.

What Time Does the Canelo-Golovkin Fight Start?
Chargin believes the fight will go the distance, "though I'd like to see it end before that". "This is my biggest fight", he said. KAZINFORM Kazinform shows pictures and videos of the official weigh-in procedure of Kazakhstan's boxer Gennady "GGG" Golovkin vs.

While the USA economy and especially its labor market has been relatively strong - unemployment has been below 5% since early 2016 - there has not been much indication that prices are starting to seriously accelerate, which traditionally prompts the Fed to pull back the reins and raise rates.

The Fed has been at pains to avoid a repeat of 2013's "taper tantrum", when its announcement it would start reducing the amount of bonds it bought sparked a sell-off in the financial markets. The central bank will begin in October to wind down its over $4 trillion portfolio of mortgage bonds and USA federal government debt that it accumulated in a series of purchases since late 2008. Yellen said several factors have held inflation down: a job market still healing from the recession, lower energy prices and a strong dollar, which has reduced the costs of imports.

United States central bankers are counting on steady growth and low unemployment to raise inflation closer to their goal, which would support their policy of gradual tightening through interest-rate increases and a reversal of quantitative easing.

The FOMC did indicate a possible third rate hike before the end of the year, which would bring the target up to between 1.25 percent and 1.50 percent. I believe lowering the estimated long-term neutral interest rates from 3% to 2.8%, prevented stocks from falling as overstretched valuations will continue to look acceptable, every time long-term interest rates are dragged lower.

Central bankers have been in a bind over when to lift rates again. Thus, a few disappointing bits of economic data should not be expected to divert the Fed from its rate hike plans.

Fed officials cautioned that they do expect inflation to be higher than normal - at least for a little while - following the hurricanes that have devastated Texas, Florida and now Puerto Rico. "This could come in multiple forms such as the Fed's economic projections, statement and also Fed chair Yellen's testimony".

WALL STREET: Major U.S. benchmarks finished mostly higher.

Leave Your Comment

Leave Your Comment


Latest News

  • Watch Darci Lynne Farmer's 'joy and tears' over 'America's Got Talent' win

    Watch Darci Lynne Farmer's 'joy and tears' over 'America's Got Talent' win

    Coming in third was Light Balance , followed by Mandy Harvey and Sara & Hero, in fourth and fifth places, respectively. Darci's two-puppet show that culminated in a duet of Queen's "Somebody To Love" was tough to beat, though.
    Pak violates ceasefire on IB; one BSF jawan killed

    Pak violates ceasefire on IB; one BSF jawan killed

    The exchanges of firing between the Indian soldiers and the Pakistan terrorists continued till Friday morning. Panic has gripped scores of border residents living in villages close to the global border of R.S.
    Thousands Evacuated in Russia Due to 'Telephone Terror'

    Thousands Evacuated in Russia Due to 'Telephone Terror'

    Sheremetyevo airport, the capital's busiest, tightened security after a threat, Interfax reported. Three more Siberian cities evacuated shopping malls, government offices, schools and hospitals.
  • Theresa May complained to Trump after London bombing tweet

    Theresa May complained to Trump after London bombing tweet

    Police said they were treating the explosion as a "terrorist incident" and have launched an "urgent manhunt" for the suspect. Asked about his tweet calling for a tougher travel ban, Trump said " we have to be tougher and we have to be smarter ".
    Isco renews with Real Madrid until 2022

    Isco renews with Real Madrid until 2022

    The Spaniard has signed a new contract until 2022 and Real Madrid have included a € 700 million release clause in his contract. As a result, the Spain global will now remain under contract with Los Blancos until the summer of 2022.
    Cassini Spacecraft Makes Its Final Approach to Saturn

    Cassini Spacecraft Makes Its Final Approach to Saturn

    Even when Cassini launched neither father nor son knew that project would cause their careers to cross paths. Its fuel tank is nearly empty, and it is simply time to end the $3.9 billion mission.
  • Owaisi flays Centre's stand on Rohingyas

    Owaisi flays Centre's stand on Rohingyas

    The plea against deportations was based on grounds of violation of conventions of worldwide human rights. The hearing on the matter has been adjourned for October 3 by the court.
    US Urges Kurds to Call Off Independence Vote

    US Urges Kurds to Call Off Independence Vote

    In recent years, there have been tensions between Baghdad and Kurdistan over power-sharing, oil revenues and territorial disputes. While Baghdad recognizes Kurdistan's autonomy, the precise boundary between the region and the rest of Iraq is unclear.
    Endless War Continues as Senate Kills Effort to Repeal 2001 Authorization

    Endless War Continues as Senate Kills Effort to Repeal 2001 Authorization

    Speaking on the Senate floor Tuesday, Paul said , "I rise today to oppose unauthorized, undeclared, and unconstitutional war". Paul's Republican colleagues agree with his sentiments, but think his amendment is the wrong way to do it.
  • Ryanair cancels more than 2000 flights over the next six weeks

    Ryanair cancels more than 2000 flights over the next six weeks

    The bonuses would be conditional on completing more than 800 flight hours for Ryanair in the 12 months up to 31 October 2018. Compensation for passengers forced to re-book could reach 25 million euros ($30 million).
    Honor 6X and Honor 8 Pro now available on Flipkart

    Honor 6X and Honor 8 Pro now available on Flipkart

    There will also be treats for the book lovers, as Amazon is offering up to Rs 5,000 on its Kindle e-readers. Sony Bravia's 40-inches full HD LED TV is being rolled out at 22% off for Rs 36,990, instead of Rs 47,900.
    Trump Shares Doctored Image of His Golf Ball Hitting Hillary Clinton

    Trump Shares Doctored Image of His Golf Ball Hitting Hillary Clinton

    The "deplorables" came back to haunt Hillary. "It doesn't help, I think, in terms of his stature. Trump has repeatedly posted critical tweets about his former 2016 presidential campaign rival.
  • Kylie Jenner is pregnant

    Kylie Jenner is pregnant

    People confirms that the 20-year-old makeup mogul is expecting her first baby and is due to give birth in February 2018. Kylie Jenner and Travis Scott have been dating since April. " Kylie and Travis are doing great", said the source.
    Hurricane Maria Spaghetti Models Move Farther From Florida

    Hurricane Maria Spaghetti Models Move Farther From Florida

    At the Puerto Rico Convention Center, where many Irma evacuees still reside, volunteers are gearing up for Hurricane Maria . According to reports , the winds reached 160 miles per hour and are believed to be headed towards St.
    Ryanair to cancel up to 50 flights/day

    Ryanair to cancel up to 50 flights/day

    In a press conference O'Leary said customers whose flights have been cancelled will receive an email by Monday evening. Most of the cancelled flights are to or from Ryanair's busiest airports, including Barcelona, Rome and Stansted.
  • Abdel Fattah al-Sisi meets with Bibi in NY

    Abdel Fattah al-Sisi meets with Bibi in NY

    This followed similar meetings that Sisi held earlier this year with American Jewish leaders at the presidential palace in Cairo. Earlier, President Sisi also met Israeli Prime Minister Benjamin Netanyahu and discussed revival of peace talks.
    Thyssenkrupp won't be on the hook for Tata Steel pensions - CFO

    Thyssenkrupp won't be on the hook for Tata Steel pensions - CFO

    The deal will require approval of Thyssenkrupp's supervisory board, Tata Steel's board of directors and European regulators. With this deal, both the companies will be able to form a strong number 2 player in the European steel market.
    CCleaner security software infects 2 million computers

    CCleaner security software infects 2 million computers

    CCleaner is an extremely popular tool amongst consumers for ridding computers of malware and improving speed and performance. The bad news for users is that they potentially remain at risk - even if they have updated their CCleaner software.

Breaking News



Recommended

Senate Republicans derail bipartisan health care compromise

But he says he won't back it because it would take money away from New Jersey and other states that expanded Medicaid. Popp's statement said: "It is the leader's intention to consider Graham-Cassidy on the floor next week".

Toys 'R' Us Has Officially Filed For Bankruptcy Protection

Babies "R" Us, the brand which deals with toys and products exclusively for babies, is also planning to enter India soon. Tuesday and plans to have locations open later this year in Sudbury, Ont., Langford, B.C., Fredericton, and Toronto.

Trump continues 'bromance' with France's Macron

One thing Trump may want to consider: the damage a tank could do to the asphalt as it rolls down Pennsylvania Avenue. Trump hoped to have military vehicles in his Inauguration Day parade, but this plan never came to fruition.

Clayton Kershaw Surrenders First Career Grand Slam

Unfortunately, Kershaw gave up his first ever grand slam in the 6th and that would be all the Phillies needed to win the game. The offensive outburst turned a loss into a win for Pivetta, who allowed just the two first-inning runs in six innings.

Newcastle fans rave over attacker after Stoke win - 'Invaluable', 'absolute…

The energy is there but we do have our own experience. "We maybe needed a different mindset of what's required". That was a disappointment after working really hard to get back on level terms.

Boston College students attacked with acid in France

Four American tourists who were attacked with acid at a train station in Marseille have been identified as college students. In previous incidents in Marseille, a driver rammed into two bus stops last month , killing a woman, USA Today reported .

Watch match highlights of Crystal Palace 0-1 Southampton

During those video meetings he could obviously see the team moving around in a game and he would stop and point out where I was. He returns to English management today, guiding Crystal Palace against Southampton at Selhurst Park, and an inescapable...

Cassini's greatest hits: Remembering the 20-year mission to Saturn

That's when radio signals from the spacecraft - its last scientific gifts to Earth - came to an abrupt halt. Cassini also discovered evidence of an ocean beneath the icy shell on Saturn's largest moon, Titan .

Baldwin and Johnson sign on to opposing health care bills

But the bill would allow states to obtain waivers exempting them from many of Obamacare's regulations. The bill would also, for the first time in history, place a federal spending cap on Medicaid.

Equifax Failed to Apply Security Patch Available for Months, Leading to Hack

Just because I don't have a social security number, I don't get access to information", said the partner at Gowlings law firm. The Equifax Canada website says it costs $19.95 per month for the same monitoring service. "We're equally affected.