Stocks march on as Fed rate hike looms, dollar steady

Stocks march on as Fed rate hike looms, dollar steady

Leila Butt, a senior economist at Prudential Portfolio Management Group, said: "As anticipated, the Fed has hiked rates for the second time in 2017 and we'd expect it to do so again before the year is out, as it also begins to shrink its balance sheet". The Hang Seng in Hong Kong dropped 1.2 percent to 25,565.34, but Shanghai's Composite index rose 0.1 percent lower to 3,132.49.

In its statement following a two-day meeting, the Fed's policy-setting committee indicated the economy had been expanding moderately, the labor market continued to strengthen and a recent softening in inflation was seen as transitory. They forecast USA economic growth of 2.2 percent in 2017, an increase from the previous projection in March.

Joseph Gagnon, senior fellow at the Peterson Institute for International Economics and former visiting associate director of the Division of Monetary Affairs at the US Federal Reserve Board, told Radio Sputnik that rates will remain relatively low for some time despite the rate hike. Fed expected USA unemployment to end the year at 4.3 per cent instead of its previous 4.5 per cent forecast.

The US economy is growing at a 3.2% annualized pace in Q-2 of Y 2017 based on data on May retail sales and consumer prices, the Atlanta Federal Reserve's most recent GDP Now forecast model showed.

The Fed's characterization of the state of the economy as "slightly softer" and additional details regarding the unwind in the balance sheet likely took pressure off the central bank to tighten, Specchia added.

Since the financial crisis as the Fed has bought government and mortgage-backed bonds to underpin the American economy, but policymakers have confirmed that they will start to reduce reinvesment of bonds as they mature.

Meanwhile, the rate of inflation over the past 12 months has slowed to 1.9% in May from 2.7% just in February.

Previously, Head of the Central Bank of Azerbaijan (CBA) Elman Rustamov said that increase in the key interest rate of the U.S. Federal Reserve System will not have a strong impact on the financial market of Azerbaijan and the manat rate. Inflation is expected to remain below 2 percent in the near term but reaches targeted 2 percent over the medium term.

However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

One FOMC member, Minneapolis Federal Reserve Bank President Neel Kashkari, dissented from the decision, preferring to keep policy on hold for now.

The FED rate is one of the most effective and at the same time unsafe levers for raising the American economy.

Related News:

  • Would-be gunman launched into Donald Trump tirade before shooting

    Would-be gunman launched into Donald Trump tirade before shooting

    Hodgkinson says her husband prepared for his trip to Washington by selling everything he owned from his home-inspection business. His only contact with the 66-year-old was returning a saddlebag that fell off Hodgkinson's Harley Davidson motorcycle.

    Ronaldo interested in Man Utd move

    Spanish newspaper Marca reported last night that the club are trying to calm Ronaldo down and get him to reconsider his position. It claimed his decision was " irreversible " and that he has already told his Madrid team-mates that he wants to leave.
    Swift returns to Spotify

    Swift returns to Spotify

    Fans of the pop stars started going insane when they realized that Perry's album was also going live at exactly the same moment. She blabbed about it James Corden during Carpool Karaoke , and then she continued in an interview with NME .
  • Deliberations resume in police officer's manslaughter trial

    Prosecutors called several witnesses to try to show that Yanez never saw the gun and acted recklessly and unreasonably. He said this evidence shows that Castile was "stoned under marijuana" when he was pulled over by Yanez.
    Helen Zille officially suspended by DA

    Helen Zille officially suspended by DA

    Zille blows the lid on "several attempts over the last few weeks to force me to resign immediately, before a hearing takes place". Earlier on Wednesday Zille was interviewed on PowerFM and repeated her defence of her controversial comments on colonialism.
    Congressman in critical condition after third surgery following shooting

    Congressman in critical condition after third surgery following shooting

    When he left, she said, Hodgkinson told her he was going to Washington , D.C.to "work with people to change the tax brackets". Steve Scalise during this hard time and recognizing him by wearing LSU gear in support of his recovery", LSU President F.
  • NFL Quarterback Colin Kaepernick Links Modern Police Officers To Fugitive Slave Patrols

    NFL Quarterback Colin Kaepernick Links Modern Police Officers To Fugitive Slave Patrols

    Kaepernick tweeted his support for Castile's family, noting "My heart aches for Philando's family". Yanez thought Castile fit the description of a robbery suspect and was reaching for a gun.

    Afghan soldier kills 2 U.S. soldiers

    Army Rangers were killed Saturday during an insider attack by an Afghan National Security Forces soldier, U.S. officials now say. The Pentagon announced the casualties in a briefing statement that did not detail the incident, Xinhua reporetd.
    India all out, Pakistan win by 180

    India all out, Pakistan win by 180

    June 12, Cardiff: Beat Sri Lanka by 3 wickets- Junaid Khan and Hasan share six wickets as Sri Lanka are bowled out for 236. He was eventually out when he sliced medium-pacer Pandya to Jadeja, running back from point.
  • Newt Gingrich: Trump has a 'compulsion to counterattack'

    Gingrich said that as president, Trump was well within his authority to fire the head of the Federal Bureau of Investigation . It is not just in the matter of the special counsel that Gingrich has let his opinion be heard.
    Four inmates including one Malaysian escape Bali jail using tunnel

    Four inmates including one Malaysian escape Bali jail using tunnel

    Davidson, 33, who fled drug charges in Perth, spent a year in Bali before he was jailed for using fraudulent travel documents. Davidson was sentenced to one year in Kerobokan last September for immigration offences after he used another man's passport.

    Donald Trump lawyer Jay Sekulow continues to insist he's not under investigation

    Trump returned to the White House on Sunday after spending Father's Day weekend at the Camp David presidential retreat. He said he had only been discussing the constitutional problem posed if the president were being investigated.


Most liked

Warriors' championship parade set for Thursday in Oakland
Curry hopped and shouted as he gave high-fives to the crowd after getting off a double-decker bus during the Thursday parade. Golden State Warriors' Stephen Curry is confident they can build a dynasty at the franchise.

Britain and EU launch Brexit talks in Brussels
Commons leader Andrea Leadsom , a leading Brexit supporter, said she believes the two-year timetable can be met. Macron said that the EU's door has always been open for Britain should it abandon plans for its Brexit .

Koepka caps a record week with US Open title
Brooks Koepka is no longer flying under the radar after surviving a packed leaderboard Sunday at Erin Hills to win the U.S. With birdie or even eagle as a possibility to get to 17-under and pass Rory's mark, Koepka nuked one 379 yards.

Surface Pro and Surface Laptops are not easy to fix
And also as with Apple's notebooks , the main components - processor, memory, storage - are all soldered to the motherboard. We recently saw what was inside the new Microsoft Surface Laptop and now it is the turn of the Microsoft Surface Pro 5.

Vehicle strikes pedestrians in London, several injured
On May 22, a suicide bomber killed 22 people at a concert by American pop singer Ariana Grande in Manchester in northern England. A group of men huddled together to condemn the " terror attack " outside the mosque, where people had been engaging in Ramadan .

FSU alum Brooks Koepka wins US Open
The last two champions, Dustin Johnson and Jordan Spieth , went on to finish in the top 10 at The Open Championship the same year. It was only fitting that Koepka left Erin Hills with yet another record matched or broken. "It was kind of bombs away", he said.

Trump Attorney: The President Is Not Under Investigation
Sekulow said his legal team had not received notice of any probe into Trump. Trump was being probed over whether he tried to obstruct justice.

1 arrested after vehicle strikes pedestrians in London
Mr Norris said, "there was definitely a guy who was dead straight in the road and another still trapped under the van". Britain has been racked by a series of terrorist attacks in recent weeks. "Everyone was shouting "a van's hit people".

Finally, Britain kicks off Brexit negotiations with EU
Business leaders are concerned about the government's stated position that "no deal is better than a bad deal" for Brexit. PM Theresa May signing the letter to the European Union triggering Article 50.

President Trump not under investigation in Russian Federation probe, lawyer says
He can not in a Twitter statement include all of that in there, but the Washington Post statement came out that morning". Adam Schiff (D-Calif.) and Douglas Lute, former USA ambassador to North Atlantic Treaty Organisation .

Lawyer says Trump isn't under investigation
He said he had only been discussing the constitutional problem posed if the president were being investigated . Sekulow , "No, he's not being investigated ". "So this was his response, via Twitter , via social media".

Macron wins majority to push through reforms
Prime Minister Edouard Philippe, a center-right politician who joined Macron's movement, cast his ballot in the port of Le Havre. On Sunday she was swift to say the record-high abstention rate in the parliamentary election weakened Macron's legitimacy.

Favourites Portugal, Mexico meet early in Confederations Cup
Ricardo Quaresma opened the scoring for Portugal in the 34th minute on a magical assist from Portuguese star Cristiano Ronaldo . In his next game, Silva scored a hat-trick against the Faroe Islands, when Ronaldo added one goal in another 6-0 victory.

Champions Trophy: Difficult to counter Fakhar Zaman's batting style, admits Virat Kohli
The two sides' most recent encounter was their tournament opener earlier this month, where India thrashed Pakistan by 124 runs. June 12, Cardiff: Beat Sri Lanka by 3 wickets- Junaid Khan and Hasan share six wickets as Sri Lanka are bowled out for 236.

Tillerson asks for 'flexibility' in Russian sanctions
The objective of Tillerson's appearance, his first of four congressional hearings this week, was to discuss the budget. He said North Korea would top the agenda at next week's high-level talks between US and Chinese officials.