
-
Trump tariffs hammer global stocks, dollar and oil
-
Authors hold London protest against Meta for 'stealing' work to train AI
-
Tate Modern gifted 'extraordinary' work by US artist Joan Mitchell
-
Mexico president welcomes being left off Trump's new tariffs list
-
Tonali eager to lead Newcastle back into Champions League
-
Lesotho hardest hit as new US tariffs rattle Africa
-
Stellantis pausing some Canada, Mexico production over Trump auto tariffs
-
Rising odds asteroid that briefly threatened Earth will hit Moon
-
Italy reels from Brignone broken leg with Winter Olympics looming
-
Is the Switch 2 worth the price? Reviews are mixed
-
Ancelotti’s tax trial wraps up in Spain with prosecutors seeking jail
-
Civilians act to bring aid to Myanmar earthquake victims
-
US trade gap narrows in February ahead of bulk of Trump tariffs
-
Stocks, dollar and oil sink as gold hits high on Trump tariffs
-
Countries eye trade talks as Trump tariff blitz roils markets
-
Arsenal defender Gabriel out for rest of the season
-
Trump says US to emerge 'stronger' as markets tumble over tariffs
-
Wiegman says Belgium games can aid England's women's Euros title defence
-
Prosecutors demand jail term for Ancelotti for tax fraud
-
Syria accuses Israel of deadly destabilisation campaign
-
Skiing World Cup champion Brignone suffers broken leg
-
Iconic Paris hotel Lutetia taken over by Mandarin Oriental
-
Nepal capital chokes as wildfires rage
-
AI could impact 40 percent of jobs worldwide: UN
-
'Shocking': US tariffs worse than feared for Vietnamese exporters
-
Liverpool's Slot happy to let Premier League title bid take its course
-
USA sole bidder for 2031 Women's World Cup, UK set to host in 2035
-
Tesla sales fall again in Germany amid Musk backlash
-
Italy's skiing champion Brignone air-lifted to hospital after crash
-
US trade partners eye talks after Trump tariff blitz
-
Evenepoel adds Tour de Romandie to comeback programme
-
Defending champion I Am Maximus heads final field for Grand National
-
Rubio says US committed to NATO - but tells allies to spend more
-
Dollar, stocks sink as gold hits high on Trump tariffs
-
India eyes opportunity despite Trump tariffs hit
-
UK show reveals tawdry tale of Shakespeare folio theft
-
Top Russian official in Washington for talks on improving ties
-
Sinner's former physio to blame for failed dope tests, says ex-physical trainer
-
Germany slams Trump tariffs, US tech titans in crosshairs
-
Trump tariff blitz sparks retaliation threats, economic fears
-
Search for Malaysia's long missing MH370 suspended
-
Hungary announces ICC withdrawal as Israel's Netanyahu visits
-
Trump's tariffs sting Asian giants, including US allies
-
India says 'examining the implications' of US tariffs
-
Evenepoel set to make injury return at Tour de Romandie
-
USA sole bidder for 2031 Women's World Cup, UK set to host in 2035 - Infantino
-
McLaren's Norris says it's 'our turn' for success
-
Lessons and liquids: buried alive in Myanmar's earthquake
-
Trump tariffs spark fears for Asian jobs, exporting sectors
-
Stocks and dollar sink, havens rally as Trump tariffs fan trade war

Fed signals first US rate hike since pandemic coming in March
Federal Reserve Chair Jerome Powell on Wednesday gave a clear signal the central bank is ready to raise US interest rates in March for the first time since cutting them to zero when Covid-19 broke out.
That would end the era of easy money that fueled Wall Street's record-setting run during the pandemic.
In a press conference following the year's first meeting of the Fed's policy-setting committee, Powell underscored the central bank's willingness to fight rampant inflation, even as he expects prices to subside this year.
"I would say the committee is of a mind to raise the federal funds rate at the March meeting, assuming that conditions are appropriate for doing so," Powell said in an unusually frank comment on the Fed's planned actions.
He declined to discuss the possible size of the coming rate increase, but said the recovery in the world's largest economy is strong enough that it can handle higher borrowing costs.
He noted the strong rebound in employment following the catastrophe caused by Covid-19.
"There's room to raise interest rates without threatening the labor market," he said, describing conditions for workers and employers as "historically tight" with many businesses struggling to recruit staff.
The comments reflect the central bank's policy pivot as consumer prices rose seven percent in 2021, the highest since 1982. Officials late last year retreated from their insistence that inflation was transitory, and that rates could stay lower to ensure an inclusive recovery.
However, the policy-setting Federal Open Market Committee (FOMC) still expects price pressures to recede, amid "progress on vaccinations and an easing of supply constraints."
Powell echoed those comments in his press conference, noting that "the drivers of higher inflation" were predominantly due to "the dislocations caused by the pandemic," and "we continue to expect it to decline over the course of the year."
Wall Street indices saw solid gains early Wednesday, but turned sharply negative as Powell spoke and ended mostly lower.
- 'Liftoff' is coming -
While signaling a March increase, the FOMC left policy unchanged for now, keeping rates at zero and continuing moves to wind down its bond-buying stimulus program in early March.
The committee also released guidelines for "significantly reducing" the size of its massive stockpile of securities accumulated mostly during the recent economic crisis, when it intervened to bolster financial markets.
The FOMC provided no timeframe but said it "expects that reducing the size of the Federal Reserve's balance sheet will commence after the process of increasing the target range for the federal funds rate has begun."
Beth Ann Bovino, US chief economist at S&P Global Ratings, predicted the balance sheet reduction would not start until early next year and the March hike will be the first of several.
"We expect 'liftoff' to start in March with the first of at least three rate hikes this year," she said in a note, pointing to language indicating officials believe the US economy has hit "maximum employment," one of the Fed's two priorities.
- Easy money over -
Rate increases would end the party on Wall Street that has raged more or less non-stop during the pandemic thanks to the easy money policies the Fed rolled out to rescue the economy in March 2020.
Markets were selling off in anticipation of the meeting, with the Nasdaq, which is heavy with tech stocks that particularly benefit from easy access to finance, losing seven percent last week.
Edward Moya, senior market analyst at OANDA, blamed Wall Street's downturn during the press conference on both fears of balance sheet normalization and on jitters about rate hikes.
"The more Powell talked during the (press conference), the more hawkish he sounded," Moya wrote.
I.Meyer--BTB