In a highly anticipated speech, Jerome Powell said that the Fed will raise rates if needed to fight inflation.
Stocks rose to send Wall Street to its first winning week since July after the head of the Federal Reserve said it will “proceed carefully” as it decides what to do with interest rates.
Powell instead said the Fed may raise interest rates again, if needed. Even though inflation has come down from its peak last summer, Powell said it’s still too high. The much higher rates have already sent the manufacturing industry into contraction and helped cause three high-profile US bank failures during the spring. They’ve also helped to slow inflation, but a string of stronger-than-expected reports on the economy has raised worries that upward pressure remains. That could force the Fed to keep rates higher for longer.
The two-year Treasury, which more closely tracks expectations for the Fed, rose to 5.07 per cent from 5.02 per cent late Thursday. Traders see better than a 50 per cent chance the Fed will hike its main interest rate again this year. That’s up sharply from just a week ago, according to data from CME Group.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX eyes gains; Fed chief to ‘proceed carefully’ on ratesIn a highly anticipated speech, Jerome Powell said that the Fed will raise rates if needed to fight inflation.
Read more »
ASX eyes gains; Fed chief to ‘proceed carefully’ on ratesIn a highly anticipated speech, Jerome Powell said that the Fed will raise rates if needed to fight inflation.
Read more »
ASX set to rise before a big week of data; Fortescue to reportAustralian shares are expected to lift as a trove of economic numbers and a big finish to reporting season loom, including Andrew Forrest’s mining company.
Read more »
Powell taking no chances with inflation, puts bond market on noticeUS Federal Reserve chairman Jerome Powell refused to concede the central bank’s fight with high inflation is over, putting financial markets on notice. The ASX is set to open 0.3 per cent higher on Monday.
Read more »
John was the only bidder for an auction. He still had no chanceSydney home buyers are fed up with misleading price guides. Is there any relief in sight?
Read more »
Comedian London Hughes: ‘I made more money in one year in America than my whole life in Britain’Fed up with the white boys’ club of British standup, a one-way ticket to LA finally brought fame to the ‘comedy Beyoncé’. Now she has written a memoir detailing her rise from bullied teen to transatlantic hit
Read more »