HONG KONG
\nMost equities rose in Asia on Wednesday as traders took in their stride a warning from Federal Reserve boss Jerome Powell that the US central bank \u201cdid not need to be in a hurry\u201d to cut interest rates again. The remarks, reflecting similar sentiments from another top monetary policymaker, came a day before the release of closely watched inflation data and reinforced expectations that borrowing costs would likely remain elevated for some time.
\nAsia\u2019s gains came despite worries about where US President Donald Trump\u2019s next tariffs salvo will land after he imposed 25 percent duties on aluminium and steel imports and said he was considering further measures. Powell told lawmakers at a congressional hearing that with policy \u201cnow significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust\u201d rates.
\n\u201cWe know that reducing policy restraint too fast or too much could hinder progress on inflation,\u201d he said. \u201cAt the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment.\u201d The Fed cut rates three times last year as inflation continued to slow and the labour market softened but expectations for more reductions over the next 12 months have been pared because progress is slow.
\nObservers said worries that Trump\u2019s tariffs, and plans to slash taxes, regulations and immigration, could reignite prices had also played a role in traders scaling back their rate-cut bets. \u201cOne way or another the US consumer will pay for tariffs \u2014 they are on the hook,\u201d said Hetal Mehta, head of economic research at St James\u2019s Place. \u201cThe impact could be higher inflation, higher (US) interest rates to combat that inflation, or higher taxes for households.\u201d
\nNew York Fed chief John Williams said the economy and consumer spending remained strong going into 2025, adding that inflation will continue to ease to the bank\u2019s two percent target. However, he warned \u201cit will take time before we can achieve that target on a sustained basis\u201d and he did not expect the target to be reached this year.
\nIn a reference to Trump, he added that, despite the strong fundamentals, \u201cthe economic outlook remains highly uncertain, particularly around potential fiscal, trade, immigration, and regulatory policies\u201d. Readings on the US consumer and producer price indexes due this week will be pored over for an idea about the Fed\u2019s plans.
\nWall Street ended Tuesday on a mostly positive note, despite tech stocks dragging the Nasdaq into the red, while Frankfurt and London saw another record close. Hong Kong led gains across most Asian markets thanks to another rally in its tech firms, while Shanghai, Tokyo, Sydney, Seoul, Singapore, Manila and Jakarta were also well up. Wellington was flat, but Taipei and Mumbai edged down.
\nTokyo\u2013Nikkei 225: UP 0.4 percent at 38,963.70 (close) Hong Kong\u2013Hang Seng Index: UP 2.3 percent at 21,792.88 Shanghai\u2013Composite: UP 0.9 percent at 3,346.39 (close) Euro\/dollar: UP at $1.0363 from $1.0360 on Tuesday Pound\/dollar: UP at $1.2450 from $1.2446 Dollar\/yen: UP at 153.58 yen from 152.45 yenEuro\/pound: DOWN at 83.25 from 83.24 pence West Texas Intermediate: DOWN 0.3 percent at $73.08 per barrel Brent North Sea Crude: DOWN 0.3 percent at $76.78 per barrel New York\u2013Dow: UP 0.3 percent at 44,593.65 (close) London\u2013FTSE 100: UP 0.1 at 8,777.39 (close). <\/p>\n","protected":false},"excerpt":{"rendered":"
HONG KONG Most equities rose in Asia on Wednesday as traders took in their stride a warning from Federal Reserve boss Jerome Powell that the US central bank \u201cdid not need to be in a hurry\u201d to cut interest rates again. The remarks, reflecting similar sentiments from another top monetary policymaker, came a day before […]<\/p>\n","protected":false},"author":2,"featured_media":461279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-461249","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"yoast_head":"\n