US Fed Meeting Outcome LIVE Updates: Powell-led FOMC holds rates steady at 5.25-5.50%, cuts

US Fed Meeting Outcome LIVE: FOMC to meet next in June 2024

US Fed Chair Powell-led FOMC will now meet on June 11-12 to deliberate for the next set of policy decisions.

US Fed Meeting Outcome LIVE: Key highlights of Powell-led FOMC decision

 -Benchmark interest rates unchanged at 5.25-5.50 per cent, held at 23-year high mark 

-Fed to not cut rates until inflation move sustainably to two per cent target.

-Lack of further progress on inflation, economic outlook uncertain, says Fed

-Fed to slow down pace of balance-sheet runoff starting in June

US Fed Meeting Outcome LIVE: Fed prepared to adjust stance in case of emerging risks

The US Fed concluded in its statement that ‘’In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals.”

US Fed Meeting Outcome LIVE: Gold climbs over 1% as dollar, yields fall after Fed’s interest-rate decision

Gold prices climbed over one per cent on Wednesday as the dollar and US Treasury yields tumbled lower after the Federal Reserve’s interest-rate decision and Chair Powell’s speech. 

Spot gold was up 1.7 per cent at $2,323.38 per ounce, after hitting its lowest level since April 5 earlier in the session. US gold futures settled 0.4 per cent higher, at $2,311. The dollar eased 0.3 per cent, making gold less expensive for other currency holders. Benchmark US 10-year bond yields also crept lower.

US Fed Meeting Outcome LIVE: “I don’t see the stag, or the inflation,” says Powell

Fed’s Powell said at his press conference, “I don’t understand” where concerns about stagflation are coming from. Stagflation in the 1970s was 10 per cent unemployment, high single digit inflation, slow growth. Now we have solid three per cent growth and inflation under three per cent. “I don’t see the stag, or the inflation.”

US Fed Meeting Outcome LIVE: US stocks and bonds climb as Powell downplays rate hikes

Stocks joined gains in bonds after the Federal Reserve decision was not as hawkish as feared by Wall Street, with Jerome Powell saying it’s unlikely the next move will be a rate hike. The S&P 500 rose one per cent, erasing earlier losses. 

Treasuries also gained as the Fed agreed to slow the reduction in its bond portfolio. US two-year yields dropped below five per cent as swap traders boosted their bets on rate cuts and projecting higher odds that the first move will happen in November, instead of December.

US Fed Meeting Outcome LIVE: Fed’s Powell says emerging markets are navigating US policy divergence well

Federal Reserve Chair Jerome Powell said that other countries and financial markets are adapting well to the economic growth and monetary policy divergence between the U.S. and the rest of the world, without the emerging market turmoil that marked such divergence in the past. 

“For the emerging market economies, we haven’t seen the kind of turmoil that was more frequent 20 years ago, 30 years ago,” Powell told a news conference after the Fed’s decision to hold rates steady. “And that’s, I think, partly because emerging market countries, many of them have much better monetary policy frameworks, much more credibility on inflation, and so they’re navigating this pretty well this time.”

US Fed Meeting Outcome LIVE: Treasuries extend gains after Fed less hawkish than feared

Treasury yields declined, with the two-year note’s falling below five per cent, after the tone of the Federal Reserve’s latest monetary policy statement was less hawkish than many investors expected. 

Though the central bank acknowledged “lack of further progress toward its two per cent inflation goal in recent months,” market-implied expectations for at least one Fed rate cut this year remained intact. December swap contracts continued to price in about 30 basis points of easing by the central bank. 

US Fed Meeting Outcome LIVE: Dollar dips as Fed cites disappointing inflation, but keeps focus on cuts

The US dollar fell on Wednesday after the US Federal Reserve signaled it is still leaning toward eventual reductions in borrowing costs, but repeated that it wants to gain “greater confidence” that inflation will continue to fall before cutting rates. The dollar index fell 0.44 per cent at 105.85, after earlier reaching 106.49, the highest since April 16. A break above the 106.51 would be the highest since early November.

US Fed Meeting Outcome LIVE: US stocks jump as Fed chief calls a rate hike ‘unlikely’

Wall Street stocks shot higher Wednesday afternoon after Federal Reserve Chair Jerome Powell said the central bank is “unlikely” to raise interest rates. Major indices were up about one percent or more after Powell said the central bank’s next change would probably not be an interest rate increase. The Fed kept interest rates flat for the sixth straight meeting.

US Fed Meeting Outcome LIVE: Powell says unlikely that Fed’s next rate move will be a hike

The Federal Reserve’s next policy rate move is unlikely to be an increase, Fed Chair Jerome Powell said on Wednesday, adding that the central bank’s policy focus has been to maintain its current restrictive policy stance. 

“So I think it’s unlikely that the next policy rate move will be a hike. I’d say it’s unlikely,” Powell told a news conference when asked about the risks that rates may need to be lifted to bring down inflation.

US Fed Meeting Outcome LIVE: US Fed says likely longer than expected before rate cuts

US inflation data this year has not given Federal Reserve policymakers enough confidence to reduce interest rates, and it is likely that this “will take longer than previously expected,” Fed Chair Jerome Powell said Wednesday. 

While the central bank is prepared to hold rates at a high level for as long as appropriate, Powell added that it is “unlikely that the next policy rate move will be a hike.”

US Fed Meeting Outcome LIVE: US Fed says likely longer than expected before rate cuts

US inflation data this year has not given Federal Reserve policymakers enough confidence to reduce interest rates, and it is likely that this “will take longer than previously expected,” Fed Chair Jerome Powell said Wednesday. While the central bank is prepared to hold rates at a high level for as long as appropriate, Powell added that it is “unlikely that the next policy rate move will be a hike.”

US Fed Meeting Outcome LIVE: Inflation has shown a lack of progress, says Powell

“In recent months,” Chair Jerome Powell said at a news conference, “inflation has shown a lack of further progress toward our two per cent objective.” “It is likely that gaining greater confidence,” Powell added, “will take longer than previously expected.” 

The central bank’s latest message reflects an abrupt shift in its timetable on interest rates. As recently as their last meeting on March 20, the Fed’s policymakers had projected three rate reductions in 2024, likely starting in June. Rate cuts by the Fed would lead, over time, to lower borrowing costs for consumers and businesses, including for mortgages, auto loans and credit cards.

US Fed Meeting Outcome LIVE: Fed to slow the pace of balance-rheet Runoff starting in June

The Federal Reserve said it will shrink its balance sheet at a slower place beginning in June, reducing the amount of bond holdings it lets roll off every month. As part of its plan announced Wednesday, the Fed will lower the cap on how much Treasuries it will allow to mature without being reinvested each month, to $25 billion from $60 billion. It kept the cap for mortgage-backed securities unchanged at $35 billion. 

Treasuries held gains after the Fed’s announcement Wednesday. The central bank has been winding down its holdings since June 2022 — a process known as quantitative tightening — gradually increasing the combined amount of Treasury and mortgage bonds it allowed to run off without being reinvested to a total of $95 billion per month.

US Fed Meeting Outcome LIVE: Powell-led FOMC to not cut rates until inflation moves to target range

The Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two per cent.

US Fed Meeting Outcome LIVE: Fed to reduce monthly cap on Treasury securities to $25 billion from June

The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. Beginning in June, the Committee will slow the pace of decline of its securities holdings by reducing the monthly redemption cap on Treasury securities from $60 billion to $25 billion. The Committee will maintain the monthly redemption cap on agency debt and agency mortgage‑backed securities at $35 billion and will reinvest any principal payments in excess of this cap into Treasury securities.

US Fed Meeting Outcome LIVE: Fed policy statement

‘’In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two per cent,” said the FOMC in its statement.

US Fed Meeting Outcome LIVE: US Fed still leaning towards rate cuts

The US Fed signalled that it is leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings and suggested a possible stall in the movement towards more balance in the economy. 

The Fed’s latest policy statement, issued at the end of a two-day meeting, kept key elements of its economic assessment and policy guidance intact, noting that “inflation has eased” over the past year, and framing its discussion of interest rates around the conditions under which borrowing costs can be lowered.

US Fed Meeting Outcome LIVE: Key interest rates unchanged for 6th straight meeting

Powell-led FOMC held the key rates unchanged at 5.25-5.50 per cent for the sixth straight meeting. The US central bank signaled it is still leaning towards eventual reductions in borrowing costs, but put a red flag on recent disappointing inflation readings and suggested a possible stall in the movement towards more balance in the economy.

US Fed Meeting Outcome LIVE: Jerome Powell to address post-policy press conference after Fed verdict

Fed chair Jerome Powell will address post-policy press conference after Fed verdict. Follow:

US Fed Meeting Outcome LIVE: Stocks fall as traders bet on a hawkish Fed stance

Stocks extended this week’s losses after weaker-than-estimated economic data, with traders expecting the Federal Reserve to signal their rate-cut plan remains on hold. Equities edged lower after data showed US factory activity contracted — while input prices rose at the fastest pace since 2022. 

Separately, job openings figures signaled more softening in the labor market. Bonds saw small gains as the Treasury kept its quarterly debt sales steady and said it will start buybacks this month. 

The S&P 500 hovered near 5,015, while the tech-heavy Nasdaq 100 lost about one per cent. Advanced Micro Devices Inc. led losses in chipmakers after a bearish forecast for artificial-intelligence processors. 

AI darling Super Micro Computer Inc. tumbled 15 per cent on disappointing results. Amazon.com Inc. climbed as its cloud unit posted strong sales growth. Treasury 10-year yields fell three basis points to 4.65 per cent. The US dollar was little changed. Crude oil sank as US crude inventories swelled to the highest since June.

US Fed Meeting Outcome LIVE: US regulators discuss finalizing bank capital rules as soon as August

The Federal Reserve and other top US regulators are forging ahead with their plan to make big banks hold more capital, Bloomberg News reported on Wednesday. Key officials have decided to adjust the original proposal rather than starting over and some of them are pushing to finalize it as soon as August, said the report.

The Basel proposal implements international capital standards agreed by the Basel Committee on Banking Supervision following the global financial crisis. Bank regulators led by the Fed in July last year unveiled the “Basel III” proposal to overhaul how banks with more than $100 billion in assets calculate the cash they must set aside to absorb potential losses. The main areas of focus are credit risk, market risk and operational risk. According to banks, the draft goes further than the Basel accord and overstates their risks.

US Fed Meeting Outcome LIVE: Oil slumps to 7-week low ahead of US Fed verdict

Oil prices fell about three per cent to a seven-week low on Wednesday on a surprise build in US crude stocks, the prospect of a Middle East ceasefire agreement and persistent US inflation dampening the expected pace of interest rate cuts and oil demand growth. 

Brent futures fell $2.52, or 2.9 per cent, to $83.81 a barrel, while US West Texas Intermediate (WTI) crude fell $2.58, or 2.1 per cent, to $79.35. That put both benchmarks on track to close at their lowest levels since March 12 and also pushed both into technically oversold territory for the first time since December 2023.

US Fed Meeting Outcome LIVE: What market experts foresee for today’s policy verdict

V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, ‘’The Fed is likely to pause in this meeting also. The latest core inflation in the US has come at 3.7 per cent against an expectation of 3.4 per cent. This leaves no room for the Fed to cut rates anytime soon. Since the US economy is slowing down, two rate cuts are possible this year, but this will be backloaded.”

US Fed Meeting Outcome LIVE: UK’s FTSE 100 slips ahead of Fed outcome, energy stocks weigh

Britain’s FTSE 100 slipped on Wednesday, led by declines in energy stocks, while investors grew cautious ahead of the U.S. Federal Reserve’s policy decision later in the day, hoping for hints on its interest rate path. 

The blue-chip index closed down 0.3 per cent, while the mid-cap FTSE 250 ended off 0.2 per cent. Heavyweight oil and gas shares slipped 1.7 per cent as oil prices fell over two per cent to a seven-week low, weighed down by a surprise build in US crude stocks, the prospect of a Middle East ceasefire agreement and persistent US inflation. 

US Fed Meeting Outcome LIVE: Traders count down to Fed with no relief in sight for bonds

Global bond markets will take their next cue from Federal Reserve stance, which risks pushing a rebound in fixed-income assets further into the future. US policymakers are expected to signal no imminent plans for interest-rate cuts after a string of higher-than-expected inflation data, possibly keeping yields at the highest levels of the year. 

The two-year yield is hovering around five per cent, the 10-year around 4.65 per cent. US Treasuries had their worst performance in 14 months in April as traders pared bets on how much easing the Fed stands to deliver. 

They went from pricing as many as three quarter-point rate cuts this year to just one, in November at the earliest. Now, a hawkish tilt from the Fed risks putting that single reduction into question too, especially if Powell signals that delaying cuts until 2025 is a possibility.

US Fed Meeting Outcome LIVE: Bitcoin sinks before Fed after mixed investment launch

Bitcoin sank Wednesday before the US Federal Reserve’s interest rate call, and after a mixed launch in Hong Kong of investment products tracking the world’s top cryptocurrency and rival ether. At about 1450 GMT, bitcoin slid 4.26 percent to $57,315, having earlier plumbed a more than two-month low at $56,527. The US central bank is forecast to keep rates on hold after a regular policy meeting, but accompanying statements could hint at when cuts may begin or not. 

“Bitcoin prices have fallen back to their lowest level since February today,” Tickmill analyst James Harte told AFP. “Fears of a hawkish shift from the Fed are amplifying the selling with traders bracing for a firmer dollar on the back of the (decision) tonight,” which would make cryptocurrencies less attractive to hold. Markets have pushed back expectations for when the Fed will start cutting interest rates in light of elevated US inflation.

US Fed Meeting Outcome LIVE: JPMorgan, Goldman Sachs expect first rate cut in July; here’s why

Global investment banking and brokerage majors JPMorgan and Goldman Sachs still expect the US Federal Reserve to cut key interest rates as early as July 2024, despite the policy stance being hawkish and US inflation levels far away from the two per cent target. According to a report by CNN, market observers clearly have divergent views on interest rates. 

Forecasts from major Wall Street banks on the first rate cut are all over the place, according to the report. JPMorgan and Goldman Sachs expect the first cut in July, while Wells Fargo is betting on September. Bank of America does not expect the first cut until December. Some Fed policymakers, meanwhile, have even floated the possibility of a rate hike this year, instead of a cut.

US Fed Meeting Outcome LIVE: What US labour market trends indicate

The Fed has been trying hard to cool the jobs market in its pursuit of bringing inflation down…