Global stock markets climbed on yesterday as minutes from the US Federal Reserve’s early May meeting revealed that the world’s most powerful central bank is likely to approve two more half-percentage-point rate rises in the coming months.
All participants at the Fed’s May 3-4 policy meeting backed a half-percentage-point rate increase to combat inflation.
They agreed inflation had become a key threat to the economy’s performance and was at risk of racing higher without action.
The Fed’s benchmark overnight interest rate hike this month was the first of that size in more than 20 years.
Further hikes of that magnitude would “likely be appropriate” at June and July meetings, minutes show.
MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.25% higher, while Japan’s Nikkei lost 0.26%. The benchmark U.S.Treasury yields fell on Wednesday to 2.7559%, with the 2-year yield last hovering at 2.5101%.
A drop in bond yields shows how concerns about a global slowdown are now rising.. read more