Following the outsized rate cut last week, Powell said the move was a part of a “recalibration” of policy designed to protect the labor market while sustainably bringing inflation back down to the Fed’s stated 2% target.
The U.S. dollar has stabilized Thursday after rebounding strongly overnight as traders reassessed just how aggressive future U.S. rate reductions would be in the wake of the Federal Reserve starting its rate-cutting cycle with a hefty 50 basis-point reduction earlier this month.
Gold prices steadied in Asian trade on Thursday, remaining close to record highs as focus turned to an upcoming address by Federal Reserve Chair Jerome Powell, while key U.S. economic readings also loomed.
Bitcoin’s price fell on Thursday, stalling below key levels as cryptocurrency markets were pressured by a rebound in the dollar before more cues from the Federal Reserve in the coming days.
European shares jumped on Thursday, buoyed by optimism over fresh stimulus measures from China, while investors awaited remarks from the European Central Bank president.
China’s central bank lowered the cost of its medium-term loans to banks on Wednesday in a move consistent with broad policy easing measures announced a day earlier to shore up a flailing economy.
The euro rose slightly against the dollar on Wednesday while the yuan hit its strongest level in over a year, as China’s aggressive stimulus package provided the latest shot in the arm for risk appetite.
Prices rose by about 1.7% on Tuesday after China announced its most aggressive economic stimulus since the COVID-19 pandemic, with interest rate cuts and government funding.
Bitcoin’s price rose on Wednesday as persistent cheer over global monetary easing spurred more flows into risk-driven assets, with the world’s biggest cryptocurrency now in sight of a major breakout.
European shares pared some losses on Wednesday, supported by a rise in basic resources, even as a rally stimulated by China’s stimulus package showed signs of slowing down.
