Optimistic investors drove Wall Street to fresh record highs amid strong expectations of an impending US interest rate cut. The Dow Jones index lifted by 179 points, 0.7 per cent, to 26,966. The broader S&P 500 posted its third consecutive record high, up 0.8 per cent, while the tech-heavy Nasdaq rose 0.75 per cent.
A divided Federal Reserve held the line on interest rates Wednesday and indicated formally that no cuts are coming in 2019. The decision came amid divisions over what is ahead and still leaves open the possibility that policy loosening could happen before the end of the year depending on how conditions unfold.
Brazil’s central bank held its benchmark interest rate at a record-low 6.50% on Wednesday, as expected, holding back from signalling looser policy because of doubts on economic reforms. The scenario outlined by policymakers was one of anaemic economic growth and high levels of economic slack putting downward pressure on inflation at home, plus the prospect of interest rates coming down in major developed economies.
Chairman Jerome Powell said on Tuesday that the Federal Reserve is prepared to respond if it decides the Trump administration's trade conflicts are threatening the U.S. economy. Investors read his remarks as a signal that the Fed will likely cut interest rates later this year.
The United States private sector's mounting debts pose a moderate risk to the world's largest economy, Federal Reserve Chairman Jerome Powell said on Monday.
The US central bank warned on Monday of persistent risks to the financial system posed by elevated stock prices and historically high corporate debt loads as well as the impact of President Donald Trump's trade wars.
Latin American currencies softened against a stronger U.S. dollar on Thursday, a day after the U.S. Federal Reserve kept interest rates steady, while most regional stock markets broadly fell along with their global peers.
The US Federal Reserve has kept interest rates on hold despite pressure from President Donald Trump to announce a cut. The central bank said borrowing costs will remain at between 2.25%-2.5%.
President Donald Trump slammed the Federal Reserve on Tuesday for incessantly raising interest rates and said cutting rates by a full point would make the economy surge.
United States president Donald Trump said on Friday the US Federal Reserve should lower interest rates and take other unconventional measures to ease pressure on an economy that he said they slowed down. “I think they should drop rates,” Trump told reporters. “I think they really slowed us down. There's no inflation.”