Regional markets fall as Fed's Powell signals an interest rate hike

REGIONAL markets were largely in negative territory on Thursday (Jan 27), after Federal Reserve chief Jerome Powell signalled that the US central bank will hike interest rates and end its bond purchases in March.

During a policy meeting on Wednesday, Powell said the Fed would likely end the support it has provided to the US economy during the Covid-19 pandemic, amid stabilising unemployment and increasing inflation.

After the announcement, 2 major indices on Wall Street ended lower on Wednesday. The Dow Jones Industrial Average fell 0.4 per cent to 34,168.09, and the broad-based S&P 500 was down 0.2 per cent at 4,349.93. The tech-rich Nasdaq, however, had inched 0.02 per cent higher to close at 13,542.12.