Fed signals shift to inflation focus, stoking market concerns
Despite Fed chief Jerome Powell’s denials, stocks drop slightly following the central bank’s policy statement, which was interpreted as a hawkish shift
Add BT as a preferred source
US STOCKS fell after a slight change in the Federal Reserve’s statement on Wednesday (Jan 29) was interpreted as a hawkish shift, despite chairman Jerome Powell’s denials.
While the Fed kept its benchmark rate unchanged between 4.25 and 4.5 per cent, a new tone in the accompanying policy statement stirred market concerns.
The central bank removed a reference to a cooling labour market that had featured in several previous economic updates. In its updated assessment, the Fed said unemployment had “stabilised at a low level”.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Is it time to scrap COE categories for cars?
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
As more Asean states turn to Russia for fuel, will Moscow boost its influence in the region?
