Global shares mostly lower following Fed interest rate hike

US Dollar Whipsaws Around March FOMC Decision- No Direction

"The Fed has more confidence in the economy's underlying momentum and appears to be more determined to normalize interest rates", said Mark Vitner, senior economist at Wells Fargo.

FED RATE HIKE: The Fed, headed by its new chairman, Jerome Powell, said the USA economy and the job market continued to improve over the last two months and it still expects to raise interest rates three times this year.

Yet forecasts released by the Fed after it raised rates suggest a growing number of Fed officials want the central bank to start sliding over to the fast lane.

While the Fed is "very alert" to any increases that could result from the very low unemployment rate, which normally would be expected to drive wage increases, "it's not something we observe at the present".

In January, the Fed left the key rate in a target range of 1.25% to 1.5% after the final meeting of the central bank's monetary policy committee under departing chairwoman Janet Yellen.

Ten years after the financial crisis, even as the Fed is carefully moving towards normalizing policy-though it may have to move faster if inflation surprises on the upside-the risk for the global economy at the moment is populist measures by the United States government. "This latest hike may have only a modest impact on people's savings and footwear demand, but continued hikes are something retailers will need to keep an eye on over the next year, as interest rates presumably will keep getting bumped up".

The Fed has been slowly increasing the federal funds rate for the last two years as economic growth has gathered steam.

"The economic outlook has strengthened in recent months", the Fed said in its statement Wednesday.

Meanwhile, US inflation expectations remain benign (basically unchanged from the earlier projection). Powell was among the governors who voted for that approach, and the announcement Wednesday signaled that he will maintain it, particularly if economic growth continues to accelerate and unemployment remains at or below the 4.1 percent level it reached in February.

US gold futures GCcv1 for April delivery settled up $5.90, or 0.5 percent, at $1,327.40 per ounce. Beijing said it was prepared to defend its interests as the administration of President Donald Trump prepared to announce tariffs on imports from China. The Bloomberg Dollar Spot Index was lower. It will also be interesting to see how the Fed's communication evolves under Powell.

Although the Fed's outlook for 2018 was seen as bearish, the central bank was otherwise upbeat on the economy, revising up rate projections for 2019 and 2020 and raising the estimated longer-term "neutral" interest rate a touch.

Economic conditions have also shifted. That's the case right now, but with an important difference: the economy has been growing for nearly a decade, and interest rates have been historically low for the whole time.

Similarly, the Fed forecast the jobless rate to fall to as low as 3.6% in 2019 from the current rate of 4%.

Benchmark U.S. crude rose $1.63, or 2.6 percent, to $65.17 a barrel in NY.

The median projection for the long-run fed funds rate ticked up to 2.9% from 2.8% in December.

Related news:

Hot News

isis-killer-beheading-video-story-top Koreas, US end '1.5-track' talks
Mar 24, 2018 - 12:32
It was against this background that President Trump's move to agree for a meeting with North Korean leader Kim was seen very surprising.

isis-killer-beheading-video-story-top Beyonce and JAY-Z head to Jamaica to shoot tour footage
Mar 23, 2018 - 21:31
In an interview with The New York Times Style Magazine , Jay-Z revealed the couple was working on a project together at one point. Bey and Jay Z were seen riding around in Trenchtown, Bob Marley's famous hood, The pictures were shared on Twitter.

isis-killer-beheading-video-story-top "Apple Slashes Production Cost For Cheap New 5.8" iPhone X
Mar 23, 2018 - 21:26
This would translate into $1,099 for the baseline iPhone X Plus and $1,249 for the higher-end storage option. It is rumored that the affordable version might be a new iPhone SE, a series we haven't seen since 2016.

isis-killer-beheading-video-story-top Daniel Bryan cleared to compete in WWE
Mar 22, 2018 - 01:24
As we all thought, those words became prophetic when he was attacked at the end of the show by Kevin Owens and Sami Zayn. Rober Cantu. "From a fan's perspective it's wonderful because they all want to see him and know what he's capable of".

Syria government seizes two towns in Ghouta; 30 civilians killed: Monitor
Mar 19, 2018 - 00:15
Thousands of civilians streaming out of the enclave into government-held areas on Saturday came mostly from this southern sector, it said.

isis-killer-beheading-video-story-top Exit polls suggest Russian President Vladimir Putin easily wins re-election
Mar 19, 2018 - 00:12
In 2008 he was replaced by Dmitry Medvedev, who named him prime minister, and then Putin was again elected president in 2012. Video recordings from polling stations showed irregularities in a number of towns and cities across Russian Federation .

isis-killer-beheading-video-story-top Multiple dead as fire engulfs hotel in Manila's tourist precinct
Mar 19, 2018 - 00:12
The fire gutted the casino's mezzanine up to the third floor. "PRC now responding to a fire that broke at Manila Pavilion Hotel". A similar incident took place in 2015 at a factory which makes rubber slippers, where 72 people died.

isis-killer-beheading-video-story-top Barcelona 3 Chelsea 0 (4-1 on aggregate)
Mar 18, 2018 - 01:29
Puel acknowledges the tie is important for his side, but he also hopes there will be bigger games to come this season for his players.

isis-killer-beheading-video-story-top Facebook suspends Cambridge Analytica
Mar 18, 2018 - 01:28
Facebook in its statement described a rocky relationship with Cambridge Analytica , Kogan and Wylie going back to 2015. Similar stories based on the same reporting project also appeared in the New York Times and the Observer of London.

isis-killer-beheading-video-story-top Mourinho tells Man Utd stars to 'grow up'
Mar 18, 2018 - 01:28
He said: "Do you know what is also heritage?" "I'm not going to run away, disappear, cry, because I heard a few boos". The United boss said: "Do you think Sevilla do not have players that would play direct in my team?"

isis-killer-beheading-video-story-top The 21 most mesmerising photos from the 2018 Winter Paralympics
Mar 18, 2018 - 01:26
It was a close race between Huckaby and Cecile Hernandez of France with less than half a second separating them. Snowboarder Mike Schultz was selected as the USA flagbearer for the Opening Ceremony on March 9.

isis-killer-beheading-video-story-top Spotify to list stock April 3, projecting path to profit
Mar 17, 2018 - 01:48
Just a few months since then, Apple Music is now reporting a total of 38 million paying subscribers, and 8 million trial users. Those figures should climb after the recent announcement Spotify would roll out in South Africa, Israel and Vietnam.

isis-killer-beheading-video-story-top Officials plan extra enforcement for St. Paddy's Day weekend
Mar 17, 2018 - 01:48
Troopers also issued 888 speeding citations, 100 seat belt citations and 2,365 other citations. Last year, officials said 60 people were killed in drunk-driving crashes over the St.

isis-killer-beheading-video-story-top Former IU coach Tom Crean accepts job at Georgia
Mar 17, 2018 - 01:47
His next opportunity will come with Georgia, as he looks to lead it back to the NCAA tournament after it missed the last three. The Bulldogs reached the NCAA tournament just twice in nine years under Fox, including just once in the past seven seasons.

isis-killer-beheading-video-story-top De Boer 'respects United's Mourinho a lot'
Mar 17, 2018 - 01:47
Heading into a meeting with arch-rivals Liverpool on Saturday, Rashford had not started a Premier League fixture since Boxing Day. On a personal level I would be knocked out but a failure? "He will be fresh and raring to go for the World Cup".