Fed leaves interest rates under 1.75 percent following May meeting

The Federal Reserve is expected to hold short-term interest rates steady at the conclusion of its policy meeting Wednesday

The Federal Reserve is expected to hold short-term interest rates steady at the conclusion of its policy meeting Wednesday

The 10-year inflation break-even rate, which reflects the yield premium on the 10-year U.S. Treasury note over the comparable Treasury inflation-protected security, has settled recently at its highest levels in four years.

The S&P 500 recovered more than 1 percent from session lows, buoyed by tech shares. "It is only a matter of time until the next recession comes and a question of what shock will prompt it".

But dollar appreciation could also feed more gains, should it persuade overseas investors to buy USA debt without hedging currency exposure.

All of these readings could cause volatility in the pound USA dollar exchange rate. "I think (today's move) is only temporary".

After the March meeting, Fed Chairman Jerome H. Powell said a number of policymakers had brought up US trade policy in their discussions and that business leaders in their regions had said trade policy was "had become a concern going forward". But further increases could be delayed by the impact of President TrumpDonald John TrumpTop Trump trade official: "Any country or entity" exempt from tariffs will face quotas Pence in Arizona hails Arpaio as "champion" of "rule of law" Ex-Trump aide decries Senate Russia probe over high legal bills: report MORE's proposed tariffs among other obstacles. They voted unanimously Wednesday to leave it there.

The statement showed the central bank's confidence over inflation, acknowledging that core inflation rate have moved close to the central bank's 2-percent target.

The New Zealand dollar fell to its lowest level in more than four months as further signs of a robust U.S. jobs market stoked expectations that the Federal Reserve will raise interest rates again next month. However, he added that CIBC is expecting a move, as the US economy continues to expand.

The European Commission will present its spring economic forecasts, including growth, inflation, debt and deficit projections.

Earnings season continues, with Alibaba and HSBC Holdings Plc on Friday.

Amazon to open a new Vancouver office in 2022
Amazon's teams based in the Boston metropolitan area primarily focus on Alexa, Amazon Web Services, and Audible. Sarkis has been keeping an eye on the potential of Amazon selecting Boston.

The Fed, under the leadership of new chair Jerome Powell, faces a tricky path ahead as the central bank wants to encourage growth but not trigger a recession.

Berkshire Hathaway holds its annual shareholders meeting in Omaha, Nebraska on Saturday.

"The problem is the deal was made on a completely false pretence", White House press secretary Sarah Huckabee Sanders told reporters, stating that Mr Netanyahu's presentation showed "Iran's nuclear capabilities were far more advanced and further along than they indicated" at the time the agreement was negotiated. But the recent upturn in inflation, which has occurred largely before any of the fiscal stimulus ripples through the economy, could add a new dimension to these discussions.

MSCI's gauge of stocks across the globe shed 0.39 percent.

The MSCI Emerging Market Index decreased 0.9 percent to its lowest in a week.

The dollar index rose 0.3 percent, with the euro up 0.02 percent to $1.1952.

The euro was at $1.1967 from $1.1988.

The British pound declined less than 0.05 percent to $1.357.

If there is another weak month with around 100,000 jobs created (as in March when just 103,000 were reported) then the odds for three rate rises in 2018 will fall. June gold futures last traded at $1,311.50 an ounce, up 0.36% on the day.

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