Global shares fall on Fed rate hike, UK rate outlook
Global shares fall on Fed rate hike, UK rate outlook
27 June, 2017, 07:49
Yellen once again said the path of interest rates "is not a preset course", but the Fed's quarterly projections show that it still anticipates making a third rate increase this year, with the median federal funds rate ending this year at 1.4 percent. A neutral rate implies no negative effect on growth.
"With employment near its maximum sustainable level and the labor market continuing to strengthen, the Committee still expects inflation to move up and stabilize around 2 percent over the next couple of years, in line with our longer-run objective".
In a post-meeting statement, the central bank's Federal Open Market Committee (FOMC) said that on a 12-month basis, inflation has declined and, like the measure excluding food and energy prices, is running somewhat below 2 percent. Fed officials previously increased the rate in March to a range of 0.75 to 1 percent.
Not all observers agree though and plenty are sticking with the view that a further Fed rate hike is inevitable later this year.
Asia-Pacific stocks traded lower as investors took profits in the wake of the United States rate decision, with the Nikkei 225 trading down 0.26 percent and the Hang Seng down 1.20 percent (0952GMT).
"Washington, Jun 15 The Federal-reserve/6562" target=_blank US Federal Reserve has raised its benchmark interest rate by a quarter point to 1.0- 1.25 per cent and signaled another increase remains likely this year, despite the recent spate of weak economic data.
The FTSE 100 has slipped after the US Federal reserve announced an increase in interest rates.
The central bank bought massive quantities of USA government bonds as part of an unconventional monetary policy program to shore up the economy after the 2008 financial crisis, swelling its portfolio from roughly $900 billion to around $4.5 trillion.
This rebalancing could give the Fed the excuse not to hike rates as it would provide additional tightening, Hermes chief economist Neil Williams. The Nasdaq Composite Index dropped 60.09 points, or 0.97 percent, to 6,134.80. Some gains are expected on Wall Street later, with the futures for both the Dow and S&P 500 up 0.1 percent.
Under this scenario, also high-yielding currencies (Emerging Markets or EM currencies) are also prone for depreciating against the dollar (G-10 FX carry index).
In particular, they mischaracterize it as implying that papers tend to show minimum wage hikes do not affect employment. It's not just the scope of the losses, but the losses themselves which are remarkable for the public debate.
Drowning in a sea of lawsuits and recall costs, Japanese air bag maker Takata Corp.is expected to seek bankruptcy. With only 22 percent of the unsafe airbags repaired, it leaves roughly 54 million still on the road in the U.S.
In 2017, the average deductible for a silver plan is just under $3,600, according to Health Pocket, an insurance shopping site. His company was not one of the 10 that wrote to the Senate leaders, but he said Friday that he was also opposed to the bill.
Bond was also charged for helping dispose of Bella's body - and for taking government benefits for her daughter after her death. When the girl stopped screaming, Bond testified that she saw that the girl's head appeared to be swollen and her face was gray.
It seemingly doesn't matter to Spithill that Oracle merely cut Team New Zealand's lead to 4-1 in the first-to-seven regatta. Races seven and eight are scheduled for Monday (NZT) where similar wind speeds of 8-10 knots are forecast.
I did, however, find the amount of swearing in The Last Knight entirely unnecessary for something that should be a kids property. However, the fact that Michael Bay cares about the Transformers as much as Melania loves the Trumpster is infuriating.
Brazilian President Michel Temer has been charged with accepting bribes by the country's chief prosecutor, a media report said. For Temer to go on trial, the lower house of Congress must first approve Janot's charge by a two-thirds majority.
Google is stopping one of the most controversial advertising formats: ads inside Gmail that scan users' e-mail contents. Google had been scanning through what Gmail users were discussing and then showing ads connected to some of the topics.
The government will work with local authorities to make sure any unsafe material is removed and residents are safe, she said . Specifics on where the buildings were located were not given, but officials said they were in 15 council areas.
As per former Chief Minister of J&K, Omar Abdullah's tweet ( @abdullah_omar ) this is first-of-its-kind accident in the valley. He said the chief minister also directed a high level inquiry to find the causes or lapses, if any, that led to the accident.
The message after four races according to the GOP: Americans aren't as sick of the chaos in Washington as the media says. But he said there is no doubt that "this is one occasion when we ought to say he deserves to take a victory lap".
Not 'That Far Off' From Passing Health Overhaul
Sandoval said he would do "everything in my power" to make sure those people can maintain the quality of life they now have. Health and Human Services Secretary Tom Price defended the GOP health care plan Sunday from Republicans opposing the bill.
Federer wins Halle Open tennis title
Things can happen, things can change, if he has tough matches en route, he might feel it physically in the final. The Czech was playing her fifth match since the stabbing she suffered at her home in Prostejov six months ago.
Devils on the clock with No. 1 pick in NHL draft
The draft did see a record number of Finnish first rounders (six) as well as the highest ever pick from France, Alexandre Texier. It will be very interesting to see how well he does or where he fits in on the Florida roster with Barkov and Huberdeau there.
UK: All building cladding samples tested failed fire safety
The manufacturer of the insulation used to clad Grenfell Tower said they would stop using the product on high-rise buildings . Look, you've got to err on the side of caution. "In some cases it's possible to take mitigating action", she told Sky news.
White House paints Handel win as Trump triumph
These Democrats might be on to something, especially in light of the way Pelosi figured into the Republican campaign in Georgia. Asked if Pelosi should remain the top House Democratic leader in the next Congress , her number two, Rep.
England vs South Africa, 3rd T20I
But he also showed touch too in flipping leg-spinner Imran Tahir over short fine leg for a four that saw him to fifty. Morris was the most successful bowler with two wickets, while Phehlukwayo and Dane Paterson claimed one wicket each.
Dozen frustrated Dems face steep challenge to unseat Pelosi
After Hillary Clinton's loss to Donald Trump last November, a significant crop of Democratic lawmakers attempted to vote her out. She dismissed the members who have said it is time for a change as "blatantly self-serving" and "having fun on TV".
West Virginia Bracing For Remnants Of Cindy
Flooding is already a problem in dozens of communities, and before it's over some areas could see a foot of water or more. On Friday , forecasters were trying to verify exactly how many tornadoes touched down in Alabama during Cindy's passage.
Escaped Georgia inmates captured in Tennessee after chase
They are now being extradited back to Georgia to face Murder charges, as well as Federal charges for "Unlawful Flight". He also expressed gratitude to all of the law enforcement officers who provided support and assistance in the search.
Trump making case for apprenticeships to fill jobs gap
Volkswagen has touted apprenticeship programs at its Chattanooga manufacturing plant as a way to bridge the US skilled labor gap. White House Chief of Staff Reince Priebus and Secretary of Education Betsy DeVos also participated in the roundtable.
Mourinho accused of tax fraud
The football world in Spain has been rocked by charges of tax evasion or corruption pressed against some of its top stars. Real Madrid have refuted claims Jose Mourinho signed a contract to take over at the club before he left Inter.