US Stocks Decline as Fed Keeps Rates Steady

The greenback is approaching the 110 yen level not seen since FebruaryMore

The dollar held near a four-month high against a basket of major currencies on Wednesday, buoyed by the outlook for a strong USA economy and rising yields amid signs of a slowdown elsewhere, especially in Europe.

Markets strongly expect the Fed to lift its target range for the federal funds rate again by another quarter-point to 1.75 to 2 per cent at its next meeting on June 12-13.

The world's most influential central bank gave little away in terms of guidance about future policy moves, but the market is now pricing in four increases by the Fed this year, instead of the three previously expected.

There were no surprises from the Federal Reserve's May meeting last night, with the FOMC keeping interest rates on hold, while suggesting that it remains on course to hike in June with policymakers in the U.S. unanimously voting in favour of holding rates.

The Fed lifted its benchmark rate three times past year and began to slowly trim its balance sheet.

Markets have already priced in two more rate hikes for the year - one in June and the other one in September.

In March, the Fed said that inflation excluding food and energy had "continued to run below 2 percent" on a 12-month basis.

However, a breakthrough was viewed as highly unlikely, especially as the US embassy said the delegation would leave as early as Friday evening.

Former VW boss Martin Winterkorn charged with conspiracy and fraud
VW has admitted fitting up to 11 million diesel vehicles with software that could falsely show they complied with emissions tests. In March past year , VW paid a $2.8 billion fine after pleading guilty to deceiving U.S. regulators with the defeat devices.

"Raising rates too slowly would make it necessary for monetary policy to tighten abruptly down the road, which could jeopardize the economic expansion", Fed Chairman Jerome Powell said in a speech last month.

This is largely due to the three PMI surveys collectively showing a rather muted rebound in business activity after the heavy snowfall in March - short of February's pace of growth and indicative of a subdued start to Q2 for the British economy. The economy and inflation are heating up because of a global upswing and US President Donald Trump's tax cuts. The euro was on a roll, with the European Central Bank looking set to roll back its economic stimulus in September and raise rates in the first quarter of 2019. If the administration enacts more tariffs on foreign goods coming into the United States, it's likely to hurt the economy by causing businesses to pull back on some investments and forcing Americans to pay even higher prices for some items. The company beat revenue and profit expectations in its March quarter, with its shares ending the regular session up 2.3 percent. The Labor Department will release Friday its April employment report.

In the end, the Fed meeting was a "wait and see" moment.

The Fed removed the phrase that it is "monitoring inflation developments closely".

The blue-chip index Dow Jones Industrial Average fell by 174.21 points or 0.72%, with largest sales happened in the last hour of trading.

Trade policy is another wild card. China, in response, has said it will impose its own tariffs on American products.

Tariffs, by increasing the prices of imports, can also fuel more inflation.

Related news:

Hot News

isis-killer-beheading-video-story-top Stoke vs. Crystal Palace live stream
May 05, 2018 - 19:32
James McArthur made it 1-1 for Crystal Palace in the 69th minute before Van Aanholt sealed the win four minutes from time. The Serbian has missed just two Premier League games and is now captain of the side, top-scoring with 10 goals so far.

isis-killer-beheading-video-story-top Famed journalist Charlie Rose to face sexual harassment lawsuit
May 05, 2018 - 19:32
The network has reportedly hired the law firm Proskauer Rose to help investigate all the claims against its former anchor. "Mr. The lawsuit says that Wei's health suffered as a result of her experience with CBS. "During the week of May 2, 2017, Mr.

isis-killer-beheading-video-story-top AB de Villiers declared fit for vital CSK clash
May 05, 2018 - 19:29
Dhoni was scathing in his criticism when he said post-match, "With the team we picked, we knew the kind of fielding we will do". But the way, they played in the last match will definitely give them the confidence that they will require in this game.

Dodgers Throw Combined No-Hitter vs. Padres
May 05, 2018 - 19:28
The contest was the first of a three-game set in Monterrey, and the first Major League Baseball game played in Mexico since 1999. In a historic night for Major League Baseball , the Los Angeles Dodgers delivered the first no-hitter outside the USA or Canada.

isis-killer-beheading-video-story-top Iran's Foreign Minister: We Won't Renegotiate The Nuclear Deal
May 04, 2018 - 13:54
The deal's critics are unmoved, and they are pushing for what they consider a long-overdue confrontation with Tehran . Tehran's hegemonic efforts in Iraq, Yemen, Lebanon and Syria would remain untouched, if not intensify in retaliation.

isis-killer-beheading-video-story-top China says it has 'indisputable sovereignty' over South China Sea
May 04, 2018 - 13:53
It cited sources with direct knowledge of US intelligence. "There will be near-term and long-term consequences". China, Brunei , Malaysia , the Philippines , Taiwan and Vietnam all have overlapping claims in the region.

isis-killer-beheading-video-story-top Most polluted cities in India mapped
May 04, 2018 - 13:53
Varanasi: In terms of PM2.5 in 2016, Varanasi was the third most polluted city in the world with an annual average of 151 ug/m3. The PM2.5 includes pollutants like sulfate, nitrate and black carbon, which pose the greatest risk to human health.

isis-killer-beheading-video-story-top Walmart set to acquire 73 percent stake in Flipkart, edges Amazon
May 04, 2018 - 13:51
Flipkart's co-founder Sachin Bansal might take an exit from the firm after the much-talked about Walmart's takeover. Amazon was on Thursday reported to have made a counter-offer for a 60% stake in Flipkart .

isis-killer-beheading-video-story-top Calif. Fires First Shot In EPA Fuel Economy Rollback Fight
May 04, 2018 - 13:51
The lawsuit is the latest in a build up of tension between California and the Trump administration. Jerry Brown said at a Tuesday press conference.

isis-killer-beheading-video-story-top Bodycam footage of police entering Las Vegas shooter Stephen Paddock's room
May 04, 2018 - 13:49
As officers enter the suite, they notice more cameras pointing down the hallway, and that the rooms are connected. One video clip shows when police approached Paddock's door, it was blocked by a room service cart.

isis-killer-beheading-video-story-top Border deal could slip away if June target not met: Taoiseach
May 03, 2018 - 15:59
Downing Street would not commit to saying the prime minister was confident she would overturn all of the defeats in the Lords. Last night the BBC reported that Mrs May had asked officials to draw up revised plans for post-Brexit customs arrangements.

isis-killer-beheading-video-story-top Australia's largest bank loses records of 20 million accounts
May 03, 2018 - 15:59
But OAIC is now making further inquiries after a report by APRA slammed the bank for its "widespread sense of complacency". It did not tell customers because "we balanced the need to alert customers without unnecessarily alarming them", he said.

isis-killer-beheading-video-story-top SC Collegium defers decision on Justice KM Joseph's elevation, seeks more time
May 03, 2018 - 15:54
In a statement, the apex court said it took note of the letters it received from the Centre on 26 and 30 April . The bench said the government is within its rights to send back a name for reconsideration.

isis-killer-beheading-video-story-top Amazon to employ 3000 people at new Vancouver facility
May 02, 2018 - 01:41
Amazon shares ended the US Monday trading session in the red as Jeff Bezos' firm announced plans to expand its Vancouver tech hub. Hiring AI engineers will have an impact in multiple areas of the Amazon business , though Alexa is the most obvious beneficiary.

isis-killer-beheading-video-story-top CDC: Diseases from mosquitoes, ticks on the rise
May 02, 2018 - 01:41
They include Lyme disease , anaplasmosis, Rocky Mountain spotted fever , babesiosis , rabbit fever and Powassan virus. It was introduced in NY in 1999 and has since spread across the continent, causing annual epidemics, Petersen said.