Asian-Pacific markets exhibited mixed performances following the anticipated decision by the U.S. Federal Reserve to maintain its interest rates.
In Japan, the Nikkei 225 index saw a rise of 0.25%, while the South Korean market’s KOSPI saw modest gain of 0.21%. Australia’s ASX 200 remained largely unchanged. Hong Kong’s Hang Seng index increased by 0.24%, while China’s Shanghai Composite rose 0.80%.
Yesterday, the Federal Open Market Committee maintained its benchmark policy rate within the 4.25% to 4.5% range, a level it has held since last December. This move was largely anticipated by the markets.
At this point, Fed Chair Jerome Powell said, it isn’t clear if the economy will continue its steady pace of growth, or wilt under mounting uncertainty and a possible coming spike in inflation.
“The scope, the scale, the persistence of those effects are very, very uncertain,” Powell said regarding Trump’s future action. “So it’s not at all clear what the appropriate response for monetary policy is at this time.”
It was Powell’s subtle way of saying the U.S. central bank was effectively sidelined until Trump’s sweeping policy agenda takes full effect.
U.S. stock futures remained steady following the Federal Reserve’s decision, which comes amid concerns about escalating inflation and unemployment risks.
The previous session saw the S&P 500 close up by 0.43% at 5,631.28 amidst volatile trading. The Dow Jones Industrial Average rose by 284.97 points or 0.70% to settle at 41,113.97. The Nasdaq Composite ended 0.27% higher at 17,738.16.
