Tag: Jerome Powell

Stocks are hoping to break a three-day losing streak as investors try to shake off Powell's latest comments on inflation.

(Bloomberg) -- Citigroup Inc.Most Read from BloombergDubai Stalled as Cloudy Rainfall Exacerbates FloodingTesla Again Asks Investors to Approve Mas Resonance's $56 Billion PayrollChina Says Carbide Ties With Iran Will Continue After Israel AttackIf Fed Rate Hikes Actually Triggered a Boom in U.S. Economy?

After a strong first quarter, a number of issues, including continued inflation, shrinking expectations of interest rate cuts and the Middle East conflict, caused investors to pause in April.

Asian stocks were mixed on Wednesday as markets renewed expectations that U.S. interest rates could remain high for some time. Fed Chief Executive Jerome Powell said at an event on Tuesday that the central bank has been waiting to cut its key interest rate, which is at its highest level since 2001, because it first needs more confidence that inflation will continue to fall to its 2% target. "The appetite for risk-taking remains weak, with Fed chief Jerome Powell confirming a later rate cut timetable as a series of Fed spokesmen called for more patience on the easing side of the equation," said IG market analyst Yeap Jun Rong.

"Fed chief Simmons Powell is moving more firmly toward the hawkish side," said Quincy Krosby, LPL Financial's chief global strategist.

(Bloomberg) -- Jerome Powell's hawkish comments helped push the Standard & Poor's 500 Index (S&P 500) down for the third straight time, causing two-year Treasury yields to briefly hit 5% and Asian stocks to open mixed. Bloomberg's Most Read U.S. Yields Surge as Powell's Hawkish Remarks Make 5% Possible: Market RoundupDubai Stalls as Clouds Sow Seeds to Exacerbate FloodingChina Tells Iran Carburetor Work Will Continue After Israel AttackIf Fed Rate Hikes Really Triggered a Boom in the U.S. Economy?

Asian investors hoping for some relief from soaring U.S. bond yields and a ravaging dollar were deflated by Federal Reserve matron Jerome Powell's remarks on Tuesday, and will likely be on guard in Wednesday's trading. "Rather than giving us greater confidence, the recent data clearly suggests that realizing that confidence may take longer than expected," Powell said in Washington, a signal from the world of the Bubbles that inflation will not fall back to the central bank's 2% target as quickly as expected, and so interest rates will have to stay higher for a longer period of time. The "longer-term move higher" also seems to apply to the US dollar, bond yields and financial condition indices - a suboptimal grouping for Asian assets that are already feeling the heat.