Fed holds rates steady as inflation picks up

Fed Votes to Keep Interest Rates Unchanged, But a June Hike Is Likely

Fed Votes to Keep Interest Rates Unchanged, But a June Hike Is Likely

The US Federal Reserve signalled it is getting more confident in the inflation outlook as it prepares for further increases in short-term interest rates in the coming months.

Also supporting white metal prices are geopolitical uncertainties, including ongoing US-China trade talks and the possibility that the US may withdraw from the Iranian nuclear accord. Europe's pan-European STOXX 600 index was down 0.3% as the euro held firm.

Powell chaired the Federal Open Market Committee, which voted unanimously the policy action.

E-Mini futures for the S&P 500 traded flat, with overnight results from Kraft Heinz, Tesla and Spotify in focus.

May faces cabinet split over customs union
Officials and ministers will now go back to the drawing-board in the search for a compromise between the two positions. The UK would collect tariffs set by the EU customs union on goods coming into the UK on behalf of the EU.

In fact the Federal Reserve seemingly hinted that USA inflation may be allowed to pass (slightly) above the 2 percent (y/y) target, implying that further rising United States inflation may not become a cause for more aggressive monetary tightening. But Powell's strategy will now increasingly depend on evolution of inflation.

Edison's George added that the impact from trade tensions was hypothetical at the moment, though.

Sterling was fairly range bound against the US Dollar on Wednesday, with yesterday's better-than-expected construction PMI providing no more than a temporary boost to the Pound. The Singapore Dollar on the other hand is showing signs of increased momentum against the US Dollar with the USDSGD now 0.32% lower for the day. The U.S. dollar was down to 0.9953 Swiss franc from 0.9964 Swiss franc, and it fell to 1.2830 Canadian dollars from 1.2848 Canadian dollars.

Hong Kong's Hang Seng index ended 1.3% lower, but Chinese shares bucked the trend. The index fell to a one-month closing low.

Per Brooklyn Lawyer, Conor McGregor Highly Unlikely To Get A Jail Time
These instances were dismissed by UFC president Dana White , but negotiations are apparently underway. In January, UFC star Nate Diaz tweeted he'd be back in May or June .

In Wednesday's statement, Fed officials said that inflation had "moved close" to the central bank's annual 2 percent target. It expressed a confident economic outlook, saying activity had expanded at a moderate rate and that inflation was close to its 2 percent target.

Policymakers dropped language in previous post-meeting statements that said they were closely monitoring inflation.

Many on Wall Street think the economy is accelerating so quickly that the Fed will have to hike rates three more times in 2018 to keep the economy from overheating. The unemployment rate is at a 17-year low of 4.1 percent, below the Fed's longer-run estimate of what constitutes full employment, and there are signs wages are moving firmly higher after an extended period of sluggishness. Moreover, in the second half of the year, twin deficit worries are likely to come back alongside the volatility related to mid-term elections in the USA, and the likely pickup in growth momentum for the euro zone, essentially pulling the dollar down, again. It said market-based measures of inflation compensation "remain low". Germany's Bund yield fell to 0.55%, below six-week highs hit last week.

"The market is also probably pretty long (dollar/yen) now", Horchani said, adding that the dollar could face some downside risk against the yen, if US equities come under pressure on Thursday.

Tornado watch issued for central Kansas until 10 pm
The precise magnitude and location of the most-severe weather remains questionable due to the evolution of storms overnight. North Dakota recognizes this week as Severe Summer Weather Awareness Week - a reminder that severe weather is not far away.

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