US Fed Meeting Outcome highlights: Powell-led FOMC holds rates steady at 5.25-5.50%, cuts Treasury cap to $25 billion

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 to its target of 2 per cent. However, it looks like the Fed’s fight will continue for a longer period. Driven by the rise in wages and benefits, US labour costs increased above expectations in the first quarter. 

According to a Reuters report, the US Employment Cost Index (ECI) rose 1.2 per cent in Q1 after rising by 0.9 per cent in Q4 last year. This was slightly above the 1 per cent rise forecast by economists polled by Reuters. On a year-on-year basis, labour costs rose 4.2 per cent, the same as the fourth quarter. The latest labour market data has further punctured the hopes of rate cuts as it indicates inflation still remains high in the US.

US Fed Meeting Outcome LIVE: US dollar slips ahead of Fed policy verdict

The US dollar slipped on Wednesday ahead of the conclusion of the Federal Reserve’s two-day policy meeting, with investors focused on whether Fed Chair Jerome Powell will adopt a more hawkish tone as inflation remains stubbornly above its two per cent annual target. 

Stickier than expected consumer price inflation in March dashed hopes that elevated readings in January and February were anomalies, leading traders to push back expectations on when the US central bank is likely to cut interest rates. Fed fund futures traders price in only one rate cut this year, with a roughly 50 per cent probability it will occur in September. Traders had previously expected three rate cuts this year, likely beginning in June.

US Fed Meeting Outcome LIVE: How high Fed rates can impact emerging markets

Should policymakers move to raise rates in emerging economies, global investors could be impacted. ​“Higher interest rates in emerging markets can lead to higher yields on government bonds issued by these countries. This is likely to attract foreign investors seeking higher returns, resulting in increased demand for emerging-market bonds,” said Nigel Green, CEO and founder of deVere Group

“In turn, higher yields may also lead to capital outflows from developed markets as investors reallocate their portfolios to take advantage of better returns in emerging-market bonds,” notes the deVere CEO. ​ 

Equity markets in those countries and beyond could also be affected. ​ “Sectors that are sensitive to interest rates, such as financials and utilities, are likely to benefit from higher rates due to increased profitability; while those that rely on debt financing, such as real estate and consumer discretionary, will face challenges as borrowing costs rise, potentially impacting earnings and stock prices. ​ 

US Fed Meeting Outcome LIVE: Gold regains some ground as spotlight shifts on Fed verdict

Gold prices rebounded on Wednesday as caution sets in ahead of the US Federal Reserve policy decision later in the day, while a pullback in the dollar and US Treasury yields prompted some bargain hunting. Spot gold was up one per cent at $2,307.88 per ounce, after hitting its lowest level since April 5 earlier in the session. 

US gold futures rose 0.7 per cent to $2,318.50. The dollar eased 0.2 per cent after hitting a near six-month high, making gold less expensive for other currency holders, while benchmark US 10-year bond yields also crept lower.

US Fed Meeting Outcome LIVE: Today’s could possibly be the last hawkish stand by Powell, say analysts

The Federal Reserve’s battle with inflation stands at a critical juncture, with this year’s high readings possibly just a temporary anomaly. While current indicators hint at inflation veering off course, the prudent approach is to rely solely on data for confirmation, according to analysts. 

‘’We are of the opinion that the economy is cooling and we will see start disinflationary readings very soon possibly in the summer itself. Expectations lean towards Fed officials maintaining steady rates in today’s meeting especially with the latest data points showing a rise in labor costs and a lower unemployment rate (3.8 per cent in March, down from 3.9 per cent in January and February),” said Amit Goel, Co-Founder & Chief Global Strategist, Pace 360.

‘’It’s anticipated that Jerome Powell will strike a hawkish tone during the post-meeting news conference and we anticipate he will signal that all options remain open, including the possibility of rate hikes should the data warrant such action. Today’s could possibly be the last hawkish stand by Powell before the cooling economy forces him to sound dovish again in the next meeting,” added Goel.

US Fed Meeting Outcome LIVE: Fed’s decision will put pressure on emerging-market central banks

‘’Emerging-market central banks are increasingly under pressure to hike rates as the Federal Reserve is poised to maintain US rates at a two-decade high at its sixth consecutive meeting on Wednesday – and this has significant implications for investors around the world, affecting various asset classes and regions,” said Nigel Green, CEO and founder of deVere Group.

He says: “The Fed is expected to hold rates at the two-decade high that was first implemented last July, and markets are increasingly pessimistic about the likelihood of rate cuts this year. ​ “This puts the squeeze on emerging-market central banks – including countries like South Africa, India and Mexico – to hike their own rates in order to address currency depreciation, inflationary pressures, capital flight risks, and external debt servicing concerns.”

US Fed Meeting Outcome LIVE: Wall Street drifts as it waits to hear from Federal Reserve on rates

US stocks are drifting Wednesday as Wall Street waits to hear from the Federal Reserve about where interest rates may be heading. The S&P 500 was down 0.1 per cent in early trading, coming off its first losing month in the last six. The Dow Jones Industrial Average was up 104 points, or 0.3 per cent, as of 9:35 am Eastern time, and the Nasdaq composite was 0.2 per cent lower. 

CVS Health tumbled 18.3 per cent after reporting weaker results for the latest quarter than analysts expected. It said it’s been hurt by increased costs at its Medicare Advantage business, and it cut its forecast for profit over the full year. Other big names also dragged on the market following their profit reports, including Starbucks, Advanced Micro Devices and Super Micro Computer. 

US Fed Meeting Outcome LIVE: US companies add 192,000 jobs as wage growth cools in ADP data

US companies hired at a strong pace in April, pointing to a robust demand for workers across multiple industries. Private payrolls increased 192,000 last month after an upward revision to the prior month, according to figures published Wednesday by the ADP Research Institute in collaboration with Stanford Digital Economy Lab. 

The median estimate in a Bloomberg survey of economists called for a 183,000 gain. The back-to-back gain was the strongest since the middle of last year. Wage growth cooled in the ADP data. For people who changed jobs, wages rose 9.3 per cent, down nearly a percentage point from the prior month. Workers who stayed in their job saw a five per cent median pay bump, similar to March’s growth, according to the report.

US Fed Meeting Outcome LIVE: What analysts expect from US Fed today

Expectations for the Federal Reserve’s monetary policy decision are focused on how it reacts to the current state of the economy and its commitment to keeping prices stable while aiming for full employment. ‘’If inflation is high, the Fed may think about raising interest rates or making changes to its balance sheet to control rising prices. On the other hand, if the economy is struggling or unemployment is high, the Fed might keep policies lenient or introduce more measures to help the economy recover,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

‘’These expectations highlight the Fed’s role in balancing economic stability while addressing both inflation and unemployment concerns. With muted expectations for this policy change, the market impact is likely to be minimal. However, investors will be hanging on every word of the Fed chairman’s speech, dissecting his tone for any dovish hints. A perceived shift towards a more accommodative monetary policy could trigger a positive market response,” added Gour.

US Fed Meeting Outcome LIVE: Factors affecting Fed policy decision

The Federal Reserve’s monetary policy decisions are shaped by a diverse array of factors, according to market analysts. These encompass key economic indicators such as GDP growth, inflation rates, unemployment levels, and consumer spending. Central to its approach is maintaining inflation around two per cent through targeted policies. 

‘’The Fed places significant emphasis on achieving maximum sustainable employment. It closely watches financial market dynamics, including interest rates, stock values, and credit conditions, recognizing their potential impact on the broader economy. Global economic trends, fiscal policy choices, and managing public expectations also weigh heavily in its decision-making process. Overall, the Fed employs a comprehensive analysis of these factors to fulfill its dual mandate of price stability and supporting full employment,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd

US Fed Meeting Outcome LIVE: Wall Street tumbles in premarket ahead of Fed’s interest rate decision

US markets are on track to continue their recent slide on Wednesday after closing out their worst month since September. All eyes will be on the Federal Reserve Wednesday, but few expect the US central bank to make any change to its main lending rate, which is at its highest level in more than two decades. 

Futures for the S&P 500 fell 0.4 per cent before the bell, while futures for the Dow Jones Industrial Average lost 0.2 per cent. Most analysts think the Federal Reserve will leave its main interest rate alone when it closes its latest policy meeting Wednesday, however there is plenty of anxiety about what Chair Jerome Powell may signal about possible rate cuts later this year.

US Fed Meeting Outcome LIVE: When and where to check Fed policy announcement

Powell-led FOMC to announce policy decision at 2 pm EST or 11:30 pm (Indian standard time) later today. Here’s how you can check the policy announcement:

–One can check the policy announcement by logging in to the Fed website:
https://www.federalreserve.gov/

–One can also check the policy announcement on the Fed’s official handle on ‘X’:

US Fed Meeting Outcome LIVE: Powell-led FOMC likely to keep rates steady, debate timing of cuts

The US Federal Reserve will announce its third policy decision for 2024 on May 1. The US central bank has lifted its key lending rate to a 23-year high of between 5.25 and 5.50 per cent as part of a long-running battle to bring high inflation back down firmly to its long-term target of two per cent.