Shiv Media: Federal Reserve predicts rate cuts for 2024
1 min read
Asian markets were mostly higher on Wednesday, following a surge in U.S. stocks to record highs after the Federal Reserve signaled expected interest rate cuts. Japan’s benchmark Nikkei 225 rose 1.6%, with exports in February growing nearly 8%. Hong Kong’s benchmark also jumped 1.8%, while the Shanghai Composite lost 0.2% as the Chinese government announced measures to support the economy.
Sydney’s S&P/ASX 200 added 0.5% and South Korea’s Kospi jumped 1.5%. In the U.S., the S&P 500 surged 0.9% to an all-time high, the Dow Jones Industrial Average increased 1% to a record high, and the Nasdaq composite was up 1.3% to hit records.
Federal Reserve policymakers announced their expectation for three cuts to interest rates in 2024, easing Wall Street’s nervousness. Fed Chair Powell also indicated his expectation for inflation to gradually move down towards 2%, while officials upgraded U.S. economic growth forecasts for this year.
In the bond market, Treasury yields had a mixed reaction, with the two-year Treasury yield falling to 4.61%. Benchmark U.S. crude rose to $81.69 a barrel, while Brent crude reached $86.45 a barrel. The U.S. dollar slipped to 150.48 Japanese yen, and the euro cost $1.0937.
Overall, the outlook for the global economy appeared positive as markets responded favorably to the Federal Reserve’s announcements and measures taken by various governments to support economic growth.
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