The US central bank is sticking to the “higher for longer” interest rate scenario factored into financial markets, while downplaying the prospect of widely feared rate hikes.
There are times when the absence of actual news can be welcome. That was the markets’ take on the Federal Reserve Board’s decision to leave US interest rates unchanged.
US bond yields slipped back and the sharemarket was quite calm after the Fed -- while mentioning a lack of progress in lowering inflation towards its 2 per cent target – said this morning the risks to meeting its goals of full employment and subdued inflation have moved towards better balance over the past year.it was likely to take longer for the central bank to gain confidence that the US was on a sustainable path to 2 per cent inflation, and he didn’t know how long that would take.
Japan provides the starkest illustration of how relatively high US interest rates affect other economies. The impact is even greater on developing economies with significant US-dollar-denominated debt, which becomes more expensive to service even as their exports generate less income.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed interest rates: Why the US housing remains the big obstacle to rate cuts in 2024Investors’ hopes of rate cuts are waning as problems in the US housing market look set to keep house price and rental inflation bubbling along.
Read more »
Why the ECB will cut rates before the FedIt is clear that the ECB should start loosening quite soon. The underlying situation in the US is more evenly balanced. But the Fed, too, cannot wait forever.
Read more »
Red flag: Fed leaves rates on hold, cites ‘lack of progress’ in inflation fightFed Chair Jerome Powell said it was likely to take longer than previously expected for Fed officials to gain the “greater confidence” needed for them to kick off interest rate cuts.
Read more »
‘Lack of progress’: Fed leaves rates on hold, says cuts may be further away than expectedFed Chair Jerome Powell said it was likely to take longer than previously expected for Fed officials to gain the “greater confidence” needed for them to kick off interest rate cuts.
Read more »
‘Lack of progress’: Fed leaves rates on hold, says cuts may be further away than expectedFed Chair Jerome Powell said it was likely to take longer than previously expected for Fed officials to gain the “greater confidence” needed for them to kick off interest rate cuts.
Read more »
Sydney house prices: ‘Bullet-proof’ house prices to keep rising despite higher ratesChronic housing supply shortage would shield prices from sharp downturn if interest rates increase further, or stay higher for longer, experts say.
Read more »