Buzz It Up News

Traders take cue from Fed rate rise to push baht, stocks higher


Wednesday's action was approved 8-0, with the Fed avoiding any dissents at the first meeting Powell has presided over as chairman since succeeding Janet Yellen last month.

That mortgage owner could pay an additional $312.50 a month, or $3,750 a year, in interest if the Fed follows through with the three quarter-point hikes that it forecast for 2018 at its December policy meeting.

The Fed said it expects to raise rates twice more this year.

However, he also acknowledged that central bankers now consider the prospects of a global trade war as a "more prominent risk" to the economic outlook.

Shares were mixed in Asia on Thursday after USA stock indexes finished with small losses following the Federal Reserve's interest rate hike.

Powell said he would be "carefully considering" doing more press conferences, adding that while he and his colleagues want to communicate as clearly as possible, he wanted to "make sure that no one would take more frequent press conferences as a signal of the path of policy".

His lack of economic formalism came through again as he backed away from being specific about the changing relationship between labour market slack and inflation - a critical issue now for the pace of Fed tightening.

"He doesn't want to go so fast that he knocks over the apple cart, and I think he also tried to get us to focus on the big picture rather than splitting hairs", McCarthy told FOX Business' Ashley Webster.

The move opens up the range of interest rates paid by major central Banks: ECB 0%; Bank of England 0.5%; Bank of Japan -0.1%; Bank of Canada 1.25%; Reserve Bank of Australia 1.5%.

What's more, seven of the 15 participants on the Fed's policymaking arm favored four rate hikes in 2018, compared to just four members at the end of 2017.




The U.S. unemployment rate, now at a 17-year low of 4.1 per cent, is expected to keep falling to 3.8 per cent at the end of this year and 3.6 per cent at the end of 2019, which would be the lowest rate in a half-century.

Currently, US inflation is running at 2.2% (for the year to February) which is slightly above the Fed's target of 2%.

The central bank's preferred price gauge rose 1.7% in the 12 months through January and officials projected it to rise to 2% in 2019 and hit 2.1% the following year, the latest estimates showed.

An increase in the Fed's benchmark federal funds rate typically leads to higher rates for consumers and businesses.

While the Fed is "very alert" to any increases that could result from the very low unemployment rate, which normally would be expected to drive wage increases, "it's not something we observe at the present".

Asian shares were mixed on Wednesday as some markets erased earlier gains ahead of the Federal Reserve's first meeting since the appointment of its new chair, Jerome Powell. It gained $1.63, or 2.6 percent, to $65.17 a barrel on Wednesday.

"I read this as the Fed is still having trouble rectifying moderate growth and subdued inflation", said economist Lindsey Piegza of Stifel.

An important takeaway from the Fed meet is the increasing confidence in the United States economy.

The baht would move in line with the economic conditions of Thailand and its trading partners, he said.

Related Articles

  • 'PUBG Mobile' for Android is now broadly available

    'PUBG Mobile' for Android is now broadly available

    But now, the game has been unveiled for mobile , is free of charge, and is a remarkably faithful recreation of the PC game. While the prospect of playing PUBG during meetings excites us what doesn't is the 706MB download required to get the game.
    Google's $300m effort to assist publishers

    Google's $300m effort to assist publishers

    None of the launch partners are located in Canada, but Google promised more publishers are coming soon. Google is launching a charm offensive on publishers with the debut of a "Google News Initiative".
    PM Abbasi meets Congressman Ted Yoho, US officials in Washington

    PM Abbasi meets Congressman Ted Yoho, US officials in Washington

    The prime minister also met Congressman Ted Yoho, who is the chairperson of the Subcommittee on Asia and the Pacific. The meeting was held on Pakistan's request.
  • California City Votes to Defy 'Sanctuary State' Law, Obey Constitution

    California City Votes to Defy 'Sanctuary State' Law, Obey Constitution

    Rather, the ordinance will place our city in danger of a costly and uphill battle with the State of California. Some immigration enforcement supporters hope that Los Alamitos is the beginning of a trend.
    Fortnite Devs Removed Friendly Fire in Effort to Fight Against Player Toxicity

    Fortnite Devs Removed Friendly Fire in Effort to Fight Against Player Toxicity

    Epic added that an eye would be kept on the game mode after the changes but said that resources should still be plentiful. The closest mobile game competitors, Knives Out and Rules of Survival, made three times less in the same period of time.
    Stenson leads loaded board at Bay Hill, Woods five back

    Stenson leads loaded board at Bay Hill, Woods five back

    McIlroy, meanwhile, has gone 26 tournaments since his last victory at the Tour Championship in 2016 to win the FedEx Cup. McIlroy shot weekend rounds of 65 and 69 past year to finish in a tie for fourth, two behind victor Marc Leishman.
  • 'Black Panther' Breaks Yet Another Record, This Time For Twitter

    'Black Panther' Breaks Yet Another Record, This Time For Twitter

    However, it is quite possible the Marvel movie will be nominated in 2019 for categories like designs and special effects. When Grammy winning rapper Kendrick Lamar tweeted that he would be part of the soundtrack for the superhero blockbuster.
    Supreme Court upholds new Pa. congressional district map

    Supreme Court upholds new Pa. congressional district map

    The judges also seemed to be debating whether they should intervene at all, given the similar challenge before the U.S. A stay would have resulted in the use of the 2011 map for this year's congressional elections in Pennsylvania.
    Conte targeting FA Cup and top-four finish

    Conte targeting FA Cup and top-four finish

    He stated: "It's annoying, but I don't think I have to hide, I have to come out, be a man, and say I made a mistake and move on".
  • Sensex loses 3300-mark ahead of US Fed meet

    Sensex loses 3300-mark ahead of US Fed meet

    The laggards were Bharti Airtel, NTPC, Kotak Bank, M&M, IndusInd Bank, Axis Bank, Sun Pharma and ITC, falling up to 1.42 percent. Equity markets in Tuesday's early trade got off to a choppy start as Sensex dipped nearly 100 points before paring the losses.
    Nervous wait for fire-hit Tathra residents

    Nervous wait for fire-hit Tathra residents

    RFS Deputy Commissioner Rob Rogers said the offer of an urban pumper wouldn't have been appropriate because of the hard terrain. The incident logs shows 48 Triple 0 calls received for the Reedy Swamp fire, according the Daily Telegraph .
    Patriots' Malcolm Butler Finally Explains Super Bowl Benching

    Patriots' Malcolm Butler Finally Explains Super Bowl Benching

    Butler endured a brutal indignity in front of more than a hundred million viewers, then publicly forgave the guy who wronged him. After the Super Bowl , I got a couple calls from him. "They loved me at times when they shouldn't love me".

Comments