The U.S. central bank kept the interest rates unchanged on Wednesday after concluding its two-day monetary policy meeting, in line with market expectations.
And the uptick has jarred financial markets, which fear the Fed will have to raise rates at a faster pace, possibly three more times this year, rather than the two increases previously expected. Analysts expect another hike is coming at the next meeting in June.
Yet the Fed also emphasised the inflation target was "symmetric", suggesting it was not inclined to speed up its tightening plans.
The Fed noted that consumer prices rose 2 percent in March year-over-year.
"Inflation on a 12-month basis is expected to run near the committee's symmetric 2 per cent objective over the medium term", the policy-setting Federal Open Market Committee said in a statement on Wednesday in Washington.
Gold prices moved higher on Thursday, rebounding as the dollar moved lower in the wake of the Fed's statement following their monetary policy meeting. The trade talks carry the potential to negatively impact global stocks as a result of reduced risk appetite, and could also result in reduced purchasing momentum for emerging market currencies. We think this further reinforces the case for rates not be hiked at next week's MPC meeting.
The Fed, under the leadership of new chair Jerome Powell, faces a tricky path ahead as the central bank wants to encourage growth but not trigger a recession. Singapore is not seen as being as sensitive to higher USA interest rates in comparison to its regional peers, which does provide some light behind why the Singapore Dollar is trading somewhat higher against the USD after the FOMC statement. However, the key question is about the number of rate hikes. Therefore, we still expect the Fed to be gradual in its approach and deliver only two more rate hikes this year.
Eurozone inflation for April also came in below market expectations, while in the United Kingdom, a purchasing managers index for services was also below the consensus forecasts.
The latest batch of earnings news is also likely to attract attention, with Avis Budget (CAR), Fitbit (FIT), Kraft Heinz (KHC), MetLife (MET), Tesla (TSLA) and Sprint (S) among the companies releasing their quarterly results after the close today's trading.
The Dow Jones Industrial Average.DJI rose 5.17 points, or 0.02 percent, to 23,930.15, the S&P 500.SPX lost 5.94 points, or 0.23 percent, to 2,629.73 and the Nasdaq Composite.IXIC dropped 12.75 points, or 0.18 percent, to 7,088.15. In the near term, the recent weak economic data readings in Europe could keep the pressure on the Euro and the GBP - with expectations of tighter monetary policy moderating. The Fed's decision to leave its benchmark overnight lending rate in a target range of between one.five percent and one.seven-five-percent was unanimous. In the near term, we believe the positive push on account of the rise inflation and interest rate expectations could help the dollar to some degree.
The South African Rand is showing some indications of recovery against the US Dollar in the aftermath of the latest FOMC statement.
The Arsenal player immediately went down clutching his heel after the injury and concerned players came by to help him out. The France defender was carried off on a stretcher early on during the 1-0 defeat at the Wanda Metropolitano.
A reckless man was mauled to death in Odisha's Nabarangpur district after his bid to get a selfie with a wounded bear went wrong. A forest ranger said the Bhatara "died on the spot" and that the bear was being treated for injuries it suffered.
The launch pattern from the West Coast requires the rocket to burn a bit more fuel to deliver the craft on its proper trajectory. The InSight lander will study the Red Planet's interior using a "self-hammering" probe that will dig deeper than ever before.
The Iranian Foreign Minister said on Thursday that the United States demands for a change in the nuclear deal are unacceptable. The benchmark contract hit a 3-1/2 year closing high of $75.17 on Monday.
Police said the victim's body was decomposed and the initial autopsy didn't reveal much about the cause of death. Abraham told CBS News they will reconstruct the sequence of events by taking the suspects to the crime scene.
Ellis also said that he thought that what Manafort was being accused of was beyond the scope of Mueller's legal authority. Manafort is set to go on trial in the Virginia case on July 10, and in the Washington case on September 17.
The device's camera performance and build quality were appreciated and we expect HTC to build on that with the HTC U12 +. The device will not feature a notch on the top like other devices such as the LG G7 ThinQ and the upcoming OnePlus 6 .
Tramagliani is also an instructor at Rutger's university and was put on paid absence while until after the results of his trial. The Asbury Park Press said he declined to answer questions from a reporter outside his home.
Similar bans approved in other states haven't gone into effect because they were challenged in court over their constitutionality. Conservatives say an influx of right-leaning judicial appointments under President Trump could make it a possibility.
Attorney General Eric Holder as part of the company's long-term diversity and equity efforts", a Starbucks statement explained. The arrest of Rashon Nelson and Donte Robinson on April 12 touched off a furor around the USA over racial profiling.