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You can find the current article at its original source at http://www.theguardian.com/business/live/2015/sep/18/asian-stock-markets-mixed-as-us-federal-reserve-keeps-rates-on-hold-live
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| Version 0 | Version 1 |
|---|---|
| Asian stock markets mixed as US Federal Reserve keeps rates on hold – live! | Asian stock markets mixed as US Federal Reserve keeps rates on hold – live! |
| (34 minutes later) | |
| 4.11am BST04:11 | |
| Here’s some more reaction. | |
| 4.03am BST04:03 | |
| It is not in doubt that the Fed intends to raise rates, but the question that has obsessed economists and investors for the past couple of years has always been the timing. | |
| For Larry Elliott, the Guardian’s economics editor, Thursday night’s decision shows that the Fed has become ultra-cautious and does not want to risk hiking rates if it has to reduce them again because the recovery is not strong enough. You can read his full article here but this is the main thrust: | |
| This is the weakest recovery the world’s biggest economy has experienced in modern times and even now, more than six years after the trough of the recession, there are mixed signals. The Fed is not entirely convinced that it is party time for the US economy.The Fed is also weighing up the implications of a US interest rate increase on emerging markets, and in particular whether the prospect of higher US yields will intensify capital flows out of countries such as China and Brazil.So when will rates rise? When there is a further improvement in the jobs market and when the Fed is “reasonably confident” that inflation is on course to move back up to 2%. Not yet, in other words. | |
| 3.58am BST03:58 | |
| Markets-wise it has been a bit mixed. The expectation was for a hold so the semi-rally in stocks and currencies suchas the Australian dollar in recent days showed that the decision has been priced in. | |
| However, there has still been a bit of action, notably in Japan where the Nikkei plunged on the opening before fighting back. | |
| Here are the scores so far: | |
| 3.35am BST03:35 | 3.35am BST03:35 |
| Good afternoon/morning and welcome to the markets live blog following the Fed’s decision to keep rates near zero. | Good afternoon/morning and welcome to the markets live blog following the Fed’s decision to keep rates near zero. |
| You can read how the action unfolded here as relayed by my colleagues Graeme Wearden and Jane Kasperkevic. But the main takeaway seems to be that the very dovish comments from Fed chair Janet Yellen suggests that she and her fellow committee members might wait until next year to increase borrowing costs. | You can read how the action unfolded here as relayed by my colleagues Graeme Wearden and Jane Kasperkevic. But the main takeaway seems to be that the very dovish comments from Fed chair Janet Yellen suggests that she and her fellow committee members might wait until next year to increase borrowing costs. |
| here’s the verdict of the world’s biggest bond trading company, Pimco. | here’s the verdict of the world’s biggest bond trading company, Pimco. |