Finance

Doubts cast over Fed ability to raise rates again in 2017

Doubts cast over Fed ability to raise rates again in 2017

Also on Wednesday, a prominent Republican was among those shot by a gunman said to be angry with Trump.

The U.S. will publish initial jobless claims data at 8:30 a.m. ET on Thursday.

"In view of realised and expected labour market conditions and inflation, the FOMC (Federal Open Market Committee) chose to raise the target range for the federal funds rate to 1 to 1.25 per cent", the American central bank said in a statement after concluding its two-day monetary policy meeting.

The data on Wednesday showed U.S. consumer prices unexpectedly fell in the month of May and retails sales recorded their major drop in 16 months and this has raised questions about the bank's future progression.

The Federal Reserve raised the rate previously in March 2017 to 0.75-1 percent per annum and then kept it at the same level in May.

After a rally to the $1,265 area, gold came under renewed selling pressure in Europe on Thursday as the dollar gained fresh support against major currencies with EUR/USD sliding to the 1.1150 area.

The euro was also unchanged at $1.1217, below a seven-month peak of $1.1296 scaled overnight. Unemployment dipped to 4.3 percent in May, a 16-year low.

The Fed revealed its plans to begin reducing its $4.2tn portfolio of Treasury bonds and mortgage-backed securities left over from the 2008 financial crisis.

Fed futures markets now put the chances for another rate increase this year at below 50 percent.

Players have the chance to impress against the Chiefs, says Gatland
Gatland's Test team have emerged as a possible gritty, robust unit - and Farrell believes the tourists can transfer that resolve into facing the All Blacks.

The rise was widely expected, but Fed policymakers suggested they would raise rates again later this year despite signs of cooling inflation.

However, analysts interpret the Fed's balance sheet reduction as "ramping up slowly" due to the weakness in inflation. The rest of them said it would make such a move at its December 12-13 meeting.

The revision came just after the Fed raised interest rates Wednesday for the 2nd time in 3 months and said it would begin cutting its holdings of bonds and other securities this year, signaling its confidence in a growing USA economy and strengthening job market.

However, Yellen said business and household confidence remain quite strong, and echoed the statement from the Fed's policy-setting Federal Open Market Committee, which repeated its confidence that the economy will continue to expand "at a moderate pace" even with further gradual rate increases.

"In this climate, there are no incentives to buy the dollar", she said.

While the increase had been widely expected - thanks to positive numbers in the USA job market - the country's weak inflation figures had cast doubt on the overall strength of the U.S. economy.

Treasurys and other assets, like mortgagebacked securities, on its balance sheet.

The Australia dollar rose 0.2 percent to $0.7605, moving back toward its 2-1/2-month high of $0.7636 hit on Wednesday, after a better-than-forecast employment report.


  • 79 missing or presumed dead in the Grenfell Tower fire

    79 missing or presumed dead in the Grenfell Tower fire

    She says she will receive daily reports from the stricken neighborhood, where hundreds of people have been displaced. Mr Cundy said the search-and-recovery operation was ongoing in the burnt-out, 24-storey tower.

    Pakistan deserved to win Champions Trophy 2017: Virat Kohli

    In Sarfraz (Ahmed ), it now has a captain who can perhaps take the team to unprecedented glory in the years ahead", opined Afridi. Earlier in the day, the Uttarakhand Government has imposed Section 144 in Dehradun's Clock Tower and nearby area.
    Never heard of NDA presidential candidate Kovind: Mamata

    Never heard of NDA presidential candidate Kovind: Mamata

    We had a long list, which was discussed in the Parliamentary Board. "But they informed us after taking a decision". He was, however, non-committal about his party's support for the NDA Presidential nominee.
  • Virat Kohli named in Team of Champions Trophy, Pakistan's Sarfraz Ahmed skipper

    Virat Kohli named in Team of Champions Trophy, Pakistan's Sarfraz Ahmed skipper

    He appreciated collective team efforts for the scintillating win, adding that Pakistan Young guns proved their mettle. We knew we'd prepared well, we knew that game was an aberration, we knew we were better than that.
    UK's Hammond says new UK-EU regulatory process needed after Brexit

    UK's Hammond says new UK-EU regulatory process needed after Brexit

    May called the election in a bid to increase her majority and strengthen her hand within her party ahead of the Brexit talks. Mr Coveney said a deal was "do-able" but there were differences between the parties that needed to be bridged.
    76ers get No. 1 pick from Celtics, chance to draft Fultz

    76ers get No. 1 pick from Celtics, chance to draft Fultz

    David Griffin's run with the Cleveland Cavaliers is over after one championship and three straight trips to the NBA Finals. Lonzo Ball of UCLA is expected to go No. 2 to the Lakers, although the sides have yet to reach agreement on a deal.
  • Trump Attorney denies Rumors of Trump under Investigation

    On June 9, Trump promised to discuss the possible existence of tapes of his conversations with Comey in the very near future. Schiff said he wants the White House to acknowledge the tapes or make clear there are no tapes and "it was an idle threat".
    Ward stops Kovalev in eight to win rematch

    Ward stops Kovalev in eight to win rematch

    Kovalev , 34, has been angry for months and has been wearing a hat emblazoned with "WAR" during the buildup to Saturday's fight. At one point in the fourth round, Weeks called the fighters together and warned them to knock off the fouling.

    Attorney: Trump not under investigation

    "You've now said he is being investigated after saying" he isn't, Fox News anchor Chris Wallace said. Whether Trump himself is under investigation at this stage also is still unclear.
  • London tower toll rises to 79

    London tower toll rises to 79

    The National Health Service said that 17 patients were still being treated in hospital, of whom nine remain in critical condition. He said that five of the dead had been formally identified and it would be a slow and painstaking task to identify the others.

    Manchester United Will Profit From Cristiano Ronaldo's Next Move

    Real Madrid drops to No. 15 on the list, sitting among the likes of the New York Giants, Coca-Cola and the Los Angeles Dodgers. This is why they must press on what other deals, even though this obviously complicates them too.
    IKEA & Apple's AR App Will Change The Way You Shop

    IKEA & Apple's AR App Will Change The Way You Shop

    The news came in a recent interview that Digital.di had with Michael Valdsgaard, the digital transformation manager at Ikea . The app will make it possible for customers to try furniture in their homes to see how it looks before actually buying it.