Stock markets jumped on Friday after US Federal Reserve chief Jerome Powell made clear that the central bank was ready to cut interest rates as inflation is cooling
Paris, (UrduPoint / Pakistan Point News – 23rd Aug, 2024) Stock markets jumped on Friday after US Federal Reserve chief Jerome Powell made clear that the central bank was ready to cut interest rates as inflation is cooling.
The dollar, which performs better when borrowing costs are higher, fell against the euro, the pound and the yen, which also strengthened after Bank of Japan chief Kazuo Ueda signalled that Japanese rates could rise again.
Investors had been on tenterhooks all week in anticipation of a key speech by Powell at an annual gathering of central bankers in Jackson Hole, Wyoming.
Traders were hoping that Powell would leave no doubts that a rate reduction was on the way after data earlier this month raised recession fears and rocked the markets. The next Fed rate decision is next on September 18.
